A Book Publisher Found That the Cost to Produce 1000

question 61

Multiple Choice

A book publisher found that the cost to produce 1000 calculus textbooks is $25,600, while the cost to produce 2000 calculus textbooks is $50,300. Assume that the cost C(x) is a linear function of x, the Number of textbooks produced. What is the marginal cost of a calculus textbook?

• A)$2.47
• B)$0.02
• C)$24,700.00
• D)$24.70

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Definitions:

Risk Aversion

a preference for certain outcomes over uncertain ones, often characterized by the avoidance of risky situations.

Expected Value

A calculated average of all possible values for a random variable, taking into account their probabilities of occurrence.

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often regulated by governments.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to a negative outcome for the less-informed party.