Average variable cost and the average fixed cost

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1. Suppose the total cost of producing 10 000 tennis balls is $60 000 and the fixed cost is $20 000. What is the variable cost? When output is 10 000, what are the average variable cost and the average fixed cost?

2. Suppose you go to university and live in a residential college on campus. You pay the college for your room and board. Assume that you would have had to move out of home (with your parents) whether you went to university or taken up a full time job, and that you used some of your savings as payment for tuition). What are two examples of an explicit opportunity cost of attending university? What are two examples of an implicit opportunity cost of attending university? What is an example of a cost of attending university that is not an opportunity cost?

Reference no: EM131940270

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