In a slow year, Deutsche Burgers will produce 3.4 million hamburgers at a total cost of $5.1 million. In a good year, it can produce 5.1 million hamburgers at a total cost of $5.7 million.
- What are the fixed costs of hamburger production?
- What is the variable cost per hamburger?
- What is the average cost per burger when the firm produces 2 million hamburgers?
- What is the average cost per burger when the firm produces 3 million hamburgers?