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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