Suppose the Total Cost of Producing 40,000 Flash Drives Is

question 234

Essay

Suppose the total cost of producing 40,000 flash drives is $120,000, and the fixed cost is $30,000.
a.What is the variable cost?
b.When output is 40,000, what are the average variable cost and the average fixed cost?
c.Assuming the cost curves have the usual shape, is the dollar difference between the average total cost and the average variable cost greater when the output is 40,000 flash drives or when the output is 60,000 flash drives? Explain.

---

Definitions:

Fifth Freedom

Refers to an unofficial freedom conceptualized during the Cold War, suggesting the freedom from want through economic growth and prosperity, beyond the four freedoms articulated by Franklin D. Roosevelt.

Japanese Internment

The forced relocation and confinement of Japanese-Americans to concentration camps in the western interior of the United States during World War II by order of the U.S. government.

Military Spending

Financial resources allocated by a government or state for the maintenance and operation of armed forces.

Economic Development

The process through which a nation improves the economic, political, and social well-being of its people, often through targeted policies and programs to stimulate growth and reduce poverty.