Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 25 - Economic Growth - Problems - Page 525: 6

Answer

$100$ units → $\$1,000.50$ $1,000$ units → $\$100.50$ $1$ million units → $\$0.60$

Work Step by Step

We use the formula: $\text{Total cost}=\text{Development}+\text{Delivery}$ $\text{Total cost}=100,000+0.50\times \text{Units}$ For $\text{Units}=100$: $\frac{100,000+0.50\times 1}{100}=\$1,000.50$ For $\text{Units}=1,000$: $\frac{100,000+0.50\times 1,000}{1,000}=\$100.50$ For $\text{Units}=1,000,000$: $\frac{100,000+0.50\times 1,000,000}{1,000,000}=\$0.60$
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.