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k0ka [10]
2 years ago
8

Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a

bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water:
Business
1 answer:
timofeeve [1]2 years ago
3 0

Answer:

Cost of each bottle of water is $7.

Explanation:

This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him  $7. The cost per bottle of water reduces as units increases.

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A farmer has the ability to grow either corn or cotton or some combination of the two. Given no other information, it follows th
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Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expe
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