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You Are the Manager of a Small Biscuit Stand

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You are the manager of a small biscuit stand.The variable cost of producing one chocolate chip biscuit is $.75.Your fixed costs per week are $1000.What is the total cost per unit if 1000 biscuits are produced and sold per week? Two thousand biscuits? Do your answers for the two quantities differ? Why or why not?


Definitions:

Subduction-derived Magma

Magma that is generated by the melting of subducting oceanic crust beneath a continental plate, often leading to volcanic activity.

Oceanic Crust

The part of Earth's lithosphere that underlies the ocean basins, composed mostly of basaltic rock and thinner than the continental crust.

Island Arcs

Curved chains of volcanic islands that form along subduction zones at the edges of tectonic plates in the ocean.

Continental Rifts

Areas where the Earth's crust is stretching and splitting apart, leading to the formation of new oceanic crust.

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