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Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.

a.) What is the break even level of daily output for the firm?
b.) What is the degree of operating leverage when daily output is Q = 170?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940796

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