Illustrate at what level of output firm average total equal

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The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. Illustrate at that level of output, the firm's average total costs equal.

If salary and prices are completely flexible, then an unfavorable productivity shock would raise both the natural rate of unemployment and the actual unemployment rate. please explain this using graph.

Reference no: EM1348954

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