You are un the middle of a one-year rental contract for


You are a newspaper publisher. You are un the middle of a one-year rental contract for your factory that requires you to pay $ 500,000 per month, and you have contractual labor obligations of $ 1million per month that you can't get out of. You also have a marginal printing cost of $.25 per paper as well as a marginal delivery cost of $.10 per paper. If sales fall by 20 percent per month, what happens to the AFC per paper, the MC per paper and the minimum amount charged to break even?

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Econometrics: You are un the middle of a one-year rental contract for
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