EBK ECONOMICS TODAY
EBK ECONOMICS TODAY
18th Edition
ISBN: 9780100663336
Author: Miller
Publisher: YUZU
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Chapter 22, Problem 2FCT
To determine

Most suitable additive production methods for mass production on large scale of the similar items, might be associated with a large minimum efficient scale.

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Rex Carr owns a junkyard which processes used cars into scrap metal. In the long-run Rex can use two methods to destroy cars. The first involves purchasing a hydraulic car smasher which costs $200 a year to own and then spending $1 for every car smashed. The second method involves purchasing a hammer that will last one year and costs $40, and paying his brother Otto Carr to destroy the cars at a cost of $5 each. What is the minimum number of cars processed per year for which Rex should be willing to purchase the hydraulic smasher?
Suppose that the total variable cost for 5 outputs is equal to $100 and the total fixed cost for the same output is equal to $50. The total per unit cost (ATC) is? Group of answer choices $ 20 $ 100 $ 30 $ 50 $ 10
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