In a slow year, Deutsche Burgers will produce 3.5 million hamburgers at a total cost of $5.3 million. In a good year, it can produce 5.5 million hamburgers at a total cost of $6.2 million.
a.What are the fixed costs of hamburger production?(Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)
b.What is the variable cost per hamburger?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
c.What is the average cost per burger when the firm produces 3 million hamburgers?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
d.What is the average cost per burger when the firm produces 4 million hamburgers?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
e.Why is the average cost lower when more burgers are produced?
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