Both Stan and Kyle Own Potato Chip Factories

question 112

Multiple Choice

Both Stan and Kyle own potato chip factories. Stan's factory has low fixed costs and high variable costs. Kyle's factory has high fixed costs and low variable costs. Currently, each factory is producing 5,000 bags of potato chips at the same total cost. Complete the following statement with the correct answer. If each produces

• A) less, their costs will be equal.
• B) more, their costs will be equal.
• C) more, the costs of Kyle's factory will exceed those of Stan's factory.
• D) less, the costs of Kyle's factory will exceed those of Stan's factory.

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Definitions:

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