Suppose the Total Cost of Producing 40 000 Flash Drives

question 148

Essay

Suppose the total cost of producing 40 000 flash drives is $120 000,and the fixed cost is $30000.

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.

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Definitions:

Stamp Act

A 1765 British Act imposing a tax on all paper documents in the American colonies, leading to widespread protests and contributing to the American Revolutionary War.

Legislative Acts

Laws or statutes that have been formally enacted by a legislative body, such as a parliament or congress.

Townshend Acts

A series of laws passed by the British Parliament in 1767, imposing taxes on the American colonies for items like tea, glass, and paper.

Increase Revenues

refers to strategies or actions undertaken by a company or organization to boost the amount of money generated through its business activities.