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Business, 11.12.2019 05:31 Neoncoolguy1

You are a newspaper publisher. you are in the middle of a one-year rental contract for your factory that requires you to pay $600,000 per month, and you have contractual labor obligations of $1,250,000 per month that you can’t get out of. you also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.1 per paper. if sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the average fixed costs per paper?

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