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In a slow year, Deutsche Burgers will produce 4.5 million hamburgers at a total cost of $4.9 million. In a good year, it can produce 6 million hamburgers at a total cost of $5.5 million. Problem a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)
Problem b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Problem c. What is the average cost per burger when the firm produces 2 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Problem d. What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Problem e. Why is the average cost lower when more burgers are produced?
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