The Inventor of a New Game Believes That the Variable $x$

question 59

Multiple Choice

The inventor of a new game believes that the variable cost of producing the game is $3.75 per unit and the fixed costs are $5000. The inventor sells each game for $8.99. Let $x$ be the number of games sold. Write the average cost per unit $\bar { C } = C / x$ as a function of $x$ where $C$ is defined as the total cost of producing $x$ games.

• A) \(\bar { C } = \frac { 5000 } { x } - 5.24 x\)
• B) \(\bar { C } = 5000 + 3.75 x\)
• C) \(\bar { C } = 5000 - 5.24 x\)
• D) \(\bar { C } = \frac { 5000 } { x } + 3.75\)
• E) \(\bar { C } = \frac { 5000 } { x } - 5.24\)

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Definitions:

Mere Exposure Effect

A mental effect where individuals start to favor things simply due to their familiarity.

Reciprocity Norm

An expectation that people will help, not hurt, those who have helped them.

Mirror-Image Perceptions

Mutual views often held by conflicting people, as when each side sees itself as ethical and peaceful and views the other side as evil and aggressive.

Oxytocin

a hormone that plays a role in social bonding, sexual reproduction, and during and after childbirth.