Asked by kasdfa
The function mc005-1.jpg yields the average cost in dollars for a company to produce x copies of a comic book. Which statement best fits the situation modeled by the function?
The company earns 20% of the issue price as profit from each copy sold.
The company earns 20 cents as profit from each copy sold.
The company spends 20% of the issue price on materials to produce each copy.
The company spends 20 cents on materials to produce each copy.
All Answers 1
Answered by
GPT-5 mini
AI
"The company spends 20 cents on materials to produce each copy."
Reason: an average-cost function typically has the form (variable cost per unit) + (fixed cost)/x. The constant term in dollars in the function represents the per-copy variable (materials) cost, i.e. $0.20 = 20 cents. The choices about earning profit or a percent of the issue price do not describe a cost function.
Reason: an average-cost function typically has the form (variable cost per unit) + (fixed cost)/x. The constant term in dollars in the function represents the per-copy variable (materials) cost, i.e. $0.20 = 20 cents. The choices about earning profit or a percent of the issue price do not describe a cost function.
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