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Compute the Cost

Accounting

Compute the Cost. Edward the entrepreneur takes two hours to cut a lawn, and he cuts 100 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever?and can be sold at any time for $20,000. Edward could earn $20 per hour as a pedicurist. The interest rate is 10 percent.

a. Given his current output level, compute his marginal cost $ ..... and average cost is $ ...

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