At Bert's Bootery, the Total Cost of Producing Twenty Pairs

question 523

Multiple Choice

At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the

• A)average variable cost of 21 pairs of boots is $23.
• B)average total cost of 21 pairs of boots is $23.
• C)average total cost of 21 pairs of boots is $15.09.
• D)marginal cost of the 20th pair of boots is $20.

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Definitions:

Defective

Refers to a product, item, or component that fails to meet the quality standards or has faults, rendering it unfit for its intended purpose.

Probability

A measure of how likely it is that some event will occur; a number between 0 and 1.

Traffic Accidents

Incidents involving vehicles on public roads that result in damage, injury, or loss of life.

Poisson Distributed

A description of a distribution pattern that applies to events with a fixed interval of time or space, denoting the probability of a given number of events happening in a fixed interval.