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Business, 11.02.2020 16:32 debbys4153

You own Drip Painting company, which employs several painters. Your newest employee says "Now that we've bought drop cloths paint rollers, and other supplies, we should maximize the number of paint jobs we do that way we'll spread those fxed costs over more production". You reply.

1. "Nope, average fixed costs don't fall as you produce more."
2. "Hang on, doing more paint jobs also involves hiring more painters - that variable cost is actually much bigger than the fixed cost of equipment.
3. "You're confusing supply and demand."
4. "You're right sounds great!"

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