The Madison Co Produces a Single Product If the Firm Sells 15,000 Units Per Period, What Price

question 85

Multiple Choice

The Madison Co produces a single product. Its cost structure is: $$\begin{array} { | l | c | c | } \hline & \text { Fixd Cast } & \text { Variable Cast per Unit } \\\hline \text { Manufacturing Casts } & \$ 60,000 & \$ 35 \\\hline \text { Nan-Manufacturing Casts } & \$ 35,000 & \$ 10 \\\hline\end{array}$$ If the firm sells 15,000 units per period, what price should be charged to earn $65,000?

• A) $55
• B) $25
• C) $50
• D) $45

Understand the role of companion cells in plant tissues.

Recognize and describe the characteristics of supportive plant tissues such as fibers and sclereids.

Describe the function and structure of guard cells in plants.

Understand the role and structure of tracheids in xylem tissue.

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or activity, such as rent or salaries.

Marginal Cost

The increased cost incurred from making one more unit of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.

Short-Run Supply Curve

A graphical representation showing the quantity of a good or service that producers are willing and able to sell at different prices over a short period, holding other factors constant.