What is the average cost per ton the firm, Operation Management

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What is the average cost per ton the firm

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Q: Suppose your firm has decided to invest in a new plant to produce a chemical. The plant costs $1.3m to build, and each ton of chemical would cost $25,000 to produce. Your firm decides to produce 20,000 tons of chemicals. What is the average cost per ton the firm incurs, given that they produce 20,000 tons?

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