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...


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?



Jun 07, 2022
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