A pair of shoes that wholesales for $28.79 has approximately the following costs:

a. Which of these costs would likely be a variable cost?

b. Which would likely be a fixed cost?

c. If output were to rise, what would likely happen to average total costs? Why?

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Manufacturing labor Materials Factory overhead, operating expenses, and profit Sales costs Advertising Research and development Interest Net Income to producer Total $ 2.25 4.95 8.50 4.50 2.93 2.00 .33 3.33 $28.79