Respuesta :
Produce 5 units of output initially, but in the long run, you'll be up against competitors that have just entered the market. The market in which a company operates is competitive: When producing 0 units, the fixed cost is $5. At $4 market price, Marginal cost of producing 5th unit:
= Total cost of generating the sixth unit - the cost of producing the fifth unit
= $40 - $24 = $16
Total revenue at 5 units:
= No. of units × market price
= 6 × $4 = $24
A fifth item will cost $40 to produce in total.
What is the market's cost structure?
A company's cost structure is the sum of all of the different fixed and variable cost types that contribute into its overall expenses. Businesses use cost structures to set prices and identify places where expenses could be reduced.
What would you say about the cost structure?
A company's cost structure, which relates to the numerous types of charges it faces, is often made up of both fixed and variable costs. Variable costs fluctuate with production volume.
To know more about Market Price visit:-
brainly.com/question/15142612
#SPJ4
