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Explain the interrelationship between average cost

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Reference no: EM132526570

a) What is the typical shape of the average fixed cost (AFC) curve? Why is it shaped this way?

b) Graphically explain the interrelationship between average cost and marginal cost.

c) At 100 units of output, total cost is $30,000 and total variable cost is $14,000. What does average fixed cost equal at 100 units?

Reference no: EM132526570

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