Suppose the Total Cost of Producing 40,000 Flash Drives Is

question 234

Essay

Suppose the total cost of producing 40,000 flash drives is $120,000, and the fixed cost is $30,000.
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 60,000 flash drives? Explain.

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Definitions:

Dependability

The quality of being trustworthy and reliable, essential for establishing long-term relationships in personal and professional contexts.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer, involved in the delivery of a product or service from the supplier to the customer.

Communication

The process of exchanging information and ideas between individuals or groups using spoken words, written language, or other mediums.

Convenience

The quality of being suitable or suitable to one's needs or purposes with minimal effort or difficulty, often emphasized in product and service design.