The total monthly cost (in dollars) of producing x thousand beanie babies is:

C(x)= 250x + 5,000.

a. What are the fixed costs?
b. What is the marginal cost per beanie baby?
c. What is the total cost of producing 100,000 beanie babies?
d. What is the average cost per beanie baby when 100,000 are produced?

1 answer

a) 5,000 no matter how many

b) 250/1000 for each

c) 250 (100) + 5000 =

d) answer to c) / 100,000