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Business, 30.10.2019 03:31 jeffrey74081

You are a newspaper publisher. you are in the middle of a one-year rental contract for your factory that requires you to pay $700,000 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 $0.35 per paper as well as a marginal delivery cost of $0.10 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 afc per paper?

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