A Company Produces Toy Airplanes at a Variable Cost of $24

question 177

Multiple Choice

A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be

• A)$170,160.
• B)$24.
• C)$108,960.
• D)$279,120.

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Definitions:

Industry

The organized economic activity related to the production, processing, and marketing of goods and services.

Interindustry Competition

Competition among firms that operate in different industries but compete for the same set of customers or inputs.

Oligopolistic Producers

Firms within a market structure where a small number of companies have the majority of market share and thus can significantly influence price and production levels.

Purely Competitive

Describes a market structure where many sellers offer identical products, and no single seller can influence the market price.