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 $100. Her variable costs are $1,500 for the first thousand posters, $1,200 for the second thousand, and then $800 for each additional thousand posters. What is her AFC per poster (not per thousand!) if she prints: a) 1,000 posters b) 2,000 posters c) 10,000 posters

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Costa

22 September, 14:22

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Jaliyah Giles · Answer 1

a) - AFC per 1000 Posters:

= 100/1000

= 0.1 $

b) - AFC per 2000 Posters

= 0.05$

c) - AFC per 10,000 posters

= 0.01$