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solong [7]
1 year ago
5

the fixed cost of producing wedding cakes is $10,000 per month. the variable cost for producing 10 wedding cakes per month is $1

2,000. the average cost of producing 10 wedding cakes per month is .
Business
1 answer:
Alex1 year ago
8 0

The fixed cost of producing wedding cakes is <u>$10,000 </u>per month. The variable cost for producing 10 wedding cakes per month is <u>$12,000</u>. The average cost of producing 10 wedding cakes per month is <u>$2,200</u>.

The average fixed cost curve associated with a given level of output decreases as output expands. The total product produced by a firm for each level of output or unit of input used. Fixed costs include rent building or machinery. Variable costs are plant products water and seeds.

Fixed costs do not change as the firm changes levels of production. Rent price salary. Variable costs change according to the company's production volume. Fuel costs wage raw materials and parts. The cost of goods sold to trading companies directs materials direct labor costs variable components of manufacturing overheads sales and administrative expenses such as handling and shipping costs.

Learn more about Fixed costs here:- brainly.com/question/3636923

#SPJ4

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Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus

Explanation:

The options to this question wasn't provided. Here are the options : Both parties experience surplus, but there is inequity because Steve has a much larger producer surplus. Both parties experience surplus, so the transaction was equitable. Only Steve benefits from the sale. Srivani will not be happy with her purchase.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

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While both parties earn a surplus, the producer surplus exceeds the consumer surplus . Therefore, the seller benefited more from the trade than the consumer.

I hope my answer helps you

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