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 made of monomers. Organic plastics are polymers, composed of monomers (repeating units). A polymer is a chain of molecules repeated again and again.lastic resins are, in turn, used to produce many different types of plastic. The majority of what we know as plastic today is made from materials that are extracted from crude oil. Often the same type of crude oil that is used to produce the fuels for cars.