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.

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Definitions:

External Stimuli

Events or occurrences outside of an organism that influence its behavior or physiological responses.

Internal Sensations

Feelings or experiences that originate within the body, such as hunger, thirst, or pain.

Consciousness

The condition of being conscious and able to contemplate one’s own being, perceptions, cognitions, environment, and life events.

Tape-Record

To capture audio or data onto magnetic tape or digital format for storage and later playback.