Recall the Application About Invisible Inputs and the Cost of Fake

question 45

Multiple Choice

Recall the application about invisible inputs and the cost of fake killer whales,Sea lions off the Washington coast eat steelhead and other fish,depleting some species threatened with extinction and decreasing the harvest of the commercial fishing industry.Rick Funk is a plastics manufacturer who has offered to build a life-sized fiberglass killer whale,mount it on a rail like a roller coaster,and send the whale diving through the water to scare off the sea lions,whales' natural prey.According to Funk,it would cost about $16,000 to make the first whale,including $11,000 for the mold and $5,000 for labor and materials.Once the mold is made,each additional whale would cost an additional $5,000.Why is the mold an invisible input?

• A)because it cannot be scaled down and still produced the whales
• B)because the cost of producing the mold is not visible in the total cost
• C)because it can be scaled down and still produce the whales
• D)both B and C

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