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To: Paul Engel who wrote (46926)7/10/2001 4:06:57 PM
From: Milan ShahRead Replies (1) | Respond to of 275872
 
What ?

Albert assumed the fixed cost of TWO CPUS was the same as ONE CPU - $50 !!!


Uh, yes. If you spend $50 to buy a manufacturing plant capable of producing two chips, then the fixed cost is $50, whether you make 0, 1, or 2 chips. That's what a fixed cost means - you have to pay exactly that cost no matter how many chips you produce.

Milan