# A firm sets its price at \$10.00 per unit. It has an average variable cost of \$8.00 and an average fixed cost of \$4.00 per uni

A business produces 4000 units per month which it sells at \$20/unit. Costs include: \$10000 on r Show more a.)A business produces 4000 units per month which it sells at \$20/unit. Costs include: \$10000 on raw materials \$15000 in wages for operators and \$10000 in wages to sales people. If the business is just breaking even what are its fixed costs: b.)A firm sells 300000 units per week. It charges \$ 35 per unit the average variable costs are \$40 and the average costs are \$55. In the short run the firm should c.)A firm sets its price at \$10.00 per unit. It has an average variable cost of \$8.00 and an average fixed cost of \$4.00 per unit. In the long run this firm is d.)A firms sunk costs are \$100000 and its marginal costs are \$250 per unit. It produces 500000 units and prices it at \$400 per unit. How low can price go before the firm decides to shut down? e.)If the annual interest rate is 10% the net present value of receiving \$550 in the next year is: Show less

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