Asked by
DAVID CASTRO
on Dec 05, 2024
Verified
(Table: Cakes) Use Table: Cakes.Pat is opening a bakery to make and sell special birthday cakes.She is trying to decide how many mixers to purchase.Her estimated fixed and average variable costs if she purchases 1,2,or 3 mixers are shown in the table.Assume that average variable costs do not vary with the quantity of output.If Pat purchases 2 mixers,her average total cost _____ in the range of output between 100 and 400 cakes.
A) increases
B) decreases
C) remains the same
D) can't be calculated
Average Total Cost
The total cost of production divided by the quantity of output produced, indicating the cost per unit of output.
Range of Output
The spectrum or variety of product quantities that a production process or industry can produce, from minimum to maximum.
Mixers
Electronic or mechanical devices used to combine, blend, or process ingredients or substances in various industries, or an event primarily intended to encourage socializing.
- Examine and work out the average fixed, variable, and entire costs.
- Uncover the impact of different production quantities on cost measures.
Verified Answer
DC
Learning Objectives
- Examine and work out the average fixed, variable, and entire costs.
- Uncover the impact of different production quantities on cost measures.