Asked by Zachary Summach on May 31, 2024
Verified
A new metal alloy is discovered that uses copper and zinc in fixed proportions where each unit of the alloy requires 2 units of zinc and 2 units of copper.If no other inputs are required, if the price of zinc is $3 per unit, and the price of copper is $3 per unit and if total output is 5,000 units, what is the average cost per unit of output?
A) $6
B) $1.50
C) $12
D) $15
E) $18
Metal Alloy
A substance composed of two or more metals or a metal and a non-metal, mixed together to attain desired physical or chemical properties.
Fixed Proportions
A production technology assumption where inputs must be used in constant, unchanging ratios to produce outputs.
Average Cost
The total cost of production divided by the number of units produced, representing the cost per unit of output.
- Comprehend the principle of the cost function concerning output and input variables.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
Each unit of the alloy requires 2 units of zinc ($6) and 2 units of copper ($6), totaling $12 for the materials needed per unit of output.
Learning Objectives
- Comprehend the principle of the cost function concerning output and input variables.