Suppose the fixed costs of Facebook are $5 million. A.

1. Calculate Facebook's average fixed cost for its 2 billion active daily users.
2. If Facebook were broken up into four companies with the users spread equally among the companies, What would the average fixed cost be for those "Little Techs?
3. Has average fixed cost risen or stayed the same when "Big Tech" was broken up?

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Answer To solve this problem we need to calculate the average fixed cost for Facebook and the Little ... View the full answer