Cruise Company produces a part that is used in the manufacture of one of its products.The unit manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:
Assuming no other use for its facilities,what is the highest price per unit that Cruise Company should pay for the part?
Definitions:
Marginal Cost Curve
A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.
Average Product
The output per unit of input, such as the quantity of goods produced per worker, used to measure productivity.
Marginal Product
The additional output that can be produced by adding one more unit of a specific input, whilst holding other inputs constant.
Total Product
The total output of goods or services produced by a firm during a given period of time.
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