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A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the
A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the costs of having an office and studio staffed with the minimum staff. As a consultant, you have obtained data about the studio's production costs. Unfortunately, you do not know what the fixed costs are. What you do know is that, after the studio produced one movie last year, the studio's total cost equaled $16 million. After the studio produced its second movie last year, the studio's total cost equaled $ 32 million. Finally, after the studio produced its third movie last year, the studio's total cost equaled $52 million
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