The total monthly cost (in dollars) of producing x thousand beanie babies is:

C(x)= 250x + 5,000.

a. What are the fixed costs?
b. What is the marginal cost per beanie baby?
c. What is the total cost of producing 100,000 beanie babies?
d. What is the average cost per beanie baby when 100,000 are produced?

a) 5,000 no matter how many

b) 250/1000 for each

c) 250 (100) + 5000 =

d) answer to c) / 100,000

To find the answers to these questions, we will use the given total monthly cost function, C(x) = 250x + 5,000. Let's break down each question and explain how to get the answer.

a. Fixed costs refer to the costs that do not change with the level of production. In this case, the fixed costs can be found by looking at the constant term in the cost function. In the given function, the constant term is 5,000. Therefore, the fixed costs are $5,000.

b. Marginal cost is the additional cost incurred when producing one more unit of a particular item. To find the marginal cost per beanie baby, we need to find the derivative of the cost function C(x) with respect to x. Taking the derivative of C(x) = 250x + 5,000 with respect to x, we get:

C'(x) = 250

The derivative is a constant, which means the marginal cost per beanie baby is a constant $250.

c. To find the total cost of producing 100,000 beanie babies, we substitute x = 100,000 into the cost function C(x) = 250x + 5,000:

C(100,000) = 250(100,000) + 5,000
C(100,000) = 25,000,000 + 5,000
C(100,000) = 25,005,000

Therefore, the total cost of producing 100,000 beanie babies is $25,005,000.

d. The average cost per beanie baby is the total cost divided by the number of beanie babies produced. To find the average cost per beanie baby when 100,000 are produced, we divide the total cost by the number of beanie babies:

Average Cost = Total Cost / Number of Beanie Babies

Average Cost = 25,005,000 / 100,000
Average Cost = 250

Therefore, the average cost per beanie baby when 100,000 are produced is $250.