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Suppose you operate a factory producing lawn mowers. your current level of output is 500 lawn mowers per week. your weekly variable cost is $30,000. if your total cost is $40,000 per week, it follows that:

a.the average variable cost of production is $80.
b.the average cost of production is $80.
c.the average fixed cost of production is $80.
d.the average variable cost of production is $100.

1 Answer

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b.the average cost of production is $80.
User Renuz
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