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Suppose fixed costs are $500, and the total costs of producing 100 units is $4000.
a. What are the variable costs of producing too units.
b. Write out the total cost equation assuming variable costs are linear.
c. What is the marginal cost of the 50th unit of output?
d. What is the average total cost of the 50th unit of output?
e. What is the average variable cost of the 50th unit of output?
All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams.
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Miller D. 1990. The Icararus Paradox - How Exceptional Companies Bring About Their Own Downfall, Harper Business. Hofstede G. 1993. Cultural Constraints in Management Theories, Academy of Management Executive.
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