Suppose That a New Alloy Is Invented Which Uses Copper

question 5

Multiple Choice

suppose that a new alloy is invented which uses copper and zinc in fixed proportions where 1 unit of output requires 3 units of copper and 3 units of zinc for each unit of alloy produced.If no other inputs are needed, the price of copper is $3, and the price of zinc is $3, what is the average cost per unit when 4,000 units of the alloy are produced?

• A)$9.50
• B)$1,000
• C)$1
• D)$18
• E)$9,500

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Definitions:

Uncertainty of Demand

The unpredictability associated with the future demand for a product or service, making planning and forecasting challenging.

Flexible Production Capacity

The ability of a manufacturing process to adapt and respond to changes in demand by varying the amount of products produced without sacrificing efficiency or incurring significant costs.

Price

The amount of money required to purchase a product or service.

Risk Mitigation Strategies

Methods or plans implemented to reduce the likelihood or impact of potential threats to a business or project.