Exploring Fixed, Variable, and Marginal Costs

What is the primary goal of the software project discussed in the video?

• To eliminate fixed costs

• To determine the optimal number of programmers

• To maximize software functionality

• To minimize the number of programmers

What are considered fixed costs in the project?

• Programmer salaries

• Office space and electricity

• Lines of code produced

• Health insurance

What tool is used to calculate and analyze costs in the video?

• None of the above

• Adobe PDF

• Microsoft Excel

• Google Sheets

How is the total cost calculated in the spreadsheet?

• Variable costs divided by fixed costs

• Fixed costs minus variable costs

• Fixed costs plus variable costs

• Sum of all programmer salaries

What happens to the average fixed cost per line of code as more programmers are hired?

• It decreases

• It fluctuates unpredictably

• It increases

• It remains constant

Why does the average variable cost per line of code increase with more programmers?

• Due to higher salary demands

• Due to increased office space costs

• Because of increased coordination and meetings

• Because of cheaper software tools

What is the effect of adding more programmers on the total lines of code produced?

• Remains constant

• Increases but at a diminishing rate

• Decreases over time

• Increases linearly

What is the primary reason for the increase in average variable costs as more programmers are added?

• Lower software costs

• More coordination and less efficiency

• Higher individual productivity

• Increased office space

What does a negative marginal cost indicate in the context of this project?

• Increased profitability

• Decreased overall costs

• Reduction in productivity

• None of the above

What happens to the productivity of programmers as more are added to the project?

• Decreases due to coordination issues

• Remains the same

• Decreases slightly

• Increases significantly