Question
1.Stand-Up is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small
1."Stand-Up" is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $500 a month and has leased computer equipment that costs $300 a month. Below is the structure of the company's operational cost.
Output (Instructional Modules per Month) Fixed Costs Variable Costs Total Cost
0 800
1 800 400 1,200
2 1,650
3 1,350 2,150
4 1,900
5 2,500
6 4,000
7 4,100
8 5,400
9 7,300
10 10,600
A.What is the marginal cost of creating the tenth instructional module in a given month?
B.What is the average variable cost for the month if two instructional modules are produced?
C.What is the average fixed cost for the month if nine instructional modules are produced?
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