A bakery that produces 100 loaves of bread has a variable cost of $50 and a fixed cost of $200. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery
What will be an ideal response?
The total cost that the bakery incurs = $50 + $200 = $250.
The average total cost of the bakery = $250/100 = $2.50.
The average variable cost of the bakery = $50/100 = $0.50.
The average fixed cost of the bakery = $200/100 = $2.
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