The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a
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Question:
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new smartphone app costs $100,000 to develop and only $0.60 per unit to deliver to each smartphone customer.
Instructions: Round your answers to 2 decimal places.
a. What will be the per-unit cost of the app if it sells 100 units?
b. What will be the per-unit cost of the app if it sells 1,000 units?
c. What will be the per-unit cost of the app if it sells 1 million units?
Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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