Recall the Application about the average cost of producing a music video to answer the following
question(s).
-Recall the Application. If the first copy cost is $223,000 and the marginal cost is $0, how much total cost would the firm incur if it produces 1 million copies?
A)zero
B)$223,000
C)$1 million
D)$1 million + $223,000

Question

Quizplus · Accepted Answer

The total cost is the sum of the first copy cost and the marginal cost for additional copies. Since the marginal cost is $0, the total cost remains $223,000 regardless of the number of copies produced.

Recall the Application About the Average Cost of Producing a Music