Larraine Is the Only Jembe Drum Producer in Caltouse

question 73

Essay

Larraine is the only jembe drum producer in Caltouse.She can sell a single drum for $80 but must drop her price by $5 for every extra drum she wants to sell.Her total fixed costs are $60 and the variable cost of the first drum produced is $36.For each drum thereafter,the variable costs drop by $4 up to and including the fourth drum.After that,the cost of each additional drum increases by $4.
a)Draw the AR,MR,AC,and MC curves on the figure below.

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Definitions:

Product Development

The process of bringing a new product from concept to market introduction, including research, design, testing, and launch stages.

Marketplace

A physical or digital space where goods and services are bought and sold, involving transactions between buyers and sellers.

Basic Necessities

Essential items required for living, such as food, clothing, and shelter, essential for maintaining a basic standard of living.

Knowledge

is the information, understanding, and skills acquired through experience or education.