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good year, it can produce 4.100 million hamburgers at a total cost of $4.700 million.
a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.)
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 2 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 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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silver at a variable cost of $38 per ounce. The fixed costs of operating the mine are $50,000 per year. In half the years, silver can be sold for $54 per ounce; in the other years, silver can be sold for only $27 per ounce. Ignore taxes.
a. What is the average cash flow you will receive from the mine if it is always kept in operation and the silver always is sold in the year it is mined? (Do not round intermediate calculations.)
b. Now suppose you can costlessly shut down the mine in years of low silver prices. What happens to the average cash flow from the mine?(Do not round intermediate calculations.)
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