The fixed component in this example is $3,000 per month. The variable cost component is $10 per unit of output. Hence, at a production level of 500 units, the total electric cost is $8,000 [$3,000 + ($10 x 500)].
Plastics are derived from organic products. The materials used in the production of plastics are natural products such as cellulose, coal, natural gas, salt and, of course, crude oil. Crude oil is a complex mixture of thousands of compounds. To become useful, it must be processed.he materials used in the production of plastics are natural products such as cellulose, coal, natural gas, salt and, of course, crude oil. Crude oil is a complex mixture of thousands of compounds.
Plastic is a polymer, made up of a long chain of repeated smaller molecules. Plastics are usually made from crude oil and natural gas, but can be made from natural materials such as wood, corn, plants, and even sugars. In fact, one of the earliest plastics made in the 1800âs was from milk. So whilst both plastic and margarine can be made from vegetable oil, that is where any similarity ends. The claim is nonsensical â adding one molecule to margarine wonât turn it into plastic. Even if it were true, itâs worth considering that one molecule can make a world of difference.