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damaskus [11]
3 years ago
11

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently

$1 per poster. She has fixed costs of $250. Her variable costs are $2,000 for the first thousand posters, $1,600 for the second thousand, and then $1,000 for each additional thousand posters. What is her AFC per poster (not per thousand!) if she prints 1,000 posters?
Business
1 answer:
ratelena [41]3 years ago
8 0

Answer: 0.25 per poster

Explanation:

Given that,

Karen runs a print shop,

Current market price = $1 per poster

Fixed costs = $250

Variable costs for the:

First thousand posters = $2,000

Second thousand posters = $1,600

$1,000 for each additional thousand posters.

Therefore,

Average\ fixed\ cost\ for\ 1,000\ posters=\frac{Fixed\ cost}{No.\ of\ posters}

Average\ fixed\ cost\ for\ 1,000\ posters=\frac{250}{1,000}

= 0.25 per poster

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Follows are the instructions to this question:

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