Biology homework help
11. Average total cost is $200 for a given output, total fixed cost is 100 and average variable cost is 140. What isthe quantity being produced12. Suppose Bill views butter (b) and margarine (m) as perfectly substitutable for each other. His utility function is U(b,m)=b+mIf butter costs $2 per package, while margarine costs only $1, and Bill has a $20 budget to spend for themonth, how many packages of butter and margarine will he choose? Show all your work.hint: To answer this question, you may start from i. drawing budget line with given prices and income level ii. drawing the indifference curve corresponding to his utility function given; then find the intersection point of two curves, which will give you the Bill’s optimal consumption allocation.