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:

Estuary

A coastal area where freshwater from rivers and streams mixes with saltwater from the ocean, creating a unique and biodiverse environment.

Littoral Zone

The part of a sea, lake, or river that is close to the shore, where sunlight penetrates all the way to the sediment allowing aquatic plants to grow.

Limnetic Zone

The open and well-lit area of a freestanding body of freshwater, such as a lake or pond, away from the shore.

Benthic Zone

The environmental zone found at the bottom of water bodies like oceans or lakes, encompassing the surface of the sediment and several layers beneath it.