Suppose the total cost of producing 40 000 flash drives is $120 000, and the fixed cost is 
.
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 
flash drives? Explain.
__________________________________________________________________________________________________________________________________________________________________________________________
Definitions:
Arithmetic Average Return
The simple mean of a series of returns over a specific period, often used to gauge the performance of an investment.
Statistically Significant
Refers to a result that is not likely to occur randomly or by chance, but rather is likely to be attributable to a specific cause.
Portfolio Performance
The analysis and evaluation of the returns generated by a collection of investments held by an individual or an institution.
Observation Period
A specific timeframe during which data is collected or observations are made.
Q16: Which of the following is not an
Q21: If you exhibit the endowment effect as
Q43: A change in the slope of an
Q52: In the short run, a profit-maximising firm
Q64: Refer to Figure 6.2.When the price of
Q73: Which of the following is true at
Q92: Maria's Yiros House sells yiros.The cost of
Q127: In the utility maximising model, consumer preferences
Q240: The increase in consumption of a good
Q287: In the long run, which of the