Suppose the Average Costs of a Mining Operation Depend on the Number

question 146

Multiple Choice

Suppose the average costs of a mining operation depend on the number of machines used, and average costs, in dollars, are given by , , where x is the number of machines used. How many machines give minimum average costs? ​

• A) Using 25 machines gives the minimum average costs.
• B) Using zero machines gives the minimum average costs.
• C) Using 35 machines gives the minimum average costs.
• D) Using 50 machines gives the minimum average costs.
• E) Using 55 machines gives the minimum average costs.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and entitles the holder to a share of the company's profits through dividends.

Statement Of Comprehensive Income

A financial statement that includes all income, expenses, and comprehensive income items, presenting a complete picture of a company's financial performance.

Non-cash Item

Expenses or income that do not result in an actual cash outlay or receipt, like depreciation, amortization, or stock-based compensation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.