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 as the firm produces an infinite quantity of the video, the average total cost of producing the video will approach:
A)zero.
B)$1.00.
C)$2,230.
D)$1 million.

Question

Quizplus · Accepted Answer

As the firm produces more copies, the average total cost will approach the first copy cost divided by the number of copies. Since the marginal cost is $0, the average total cost will approach zero as the quantity approaches infinity.

Recall the Application About the Average Cost of Producing a Music