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, then how many copies should the firm sell in order to break even if the price was $10 each?
A)zero
B)2,230
C)22,300
D)223,000

Question

Quizplus · Accepted Answer

To break even, the firm needs to cover the first copy cost of $223,000. Since the marginal cost is $0, each sale at $10 contributes entirely to covering this cost. Therefore, $223,000 / $10 = 22,300 copies need to be sold to break even.

Recall the Application About the Average Cost of Producing a Music