The Total Cost (TC) of Producing Computer Software Diskettes (Q)

question 128

Multiple Choice

The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the variable cost?

• A) 200
• B) 5Q
• C) 5
• D) 5 + (200/Q)
• E) none of the above

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Definitions:

Patent

A legal document granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Primary Demand

The total demand for an entire product category rather than for a specific brand.

Selective Demand

Selective demand is the demand for a specific brand or product within a category, rather than the category as a whole, often influenced by marketing and brand differentiation.

Multibranding

A strategy involving the marketing of multiple brands by a single company in the same market, enabling the diversification of offerings to appeal to different consumer segments.