what does cost of book folding and book binding depend on?

False assumptions. In addition to the cost of the machine, you have the rent for the office space, advertising, and other expenses as well. When I was in the documentation industry, the actual cost of the paper was a pretty small percentage of the finished cost.

marginal cost - curving steeply up to the right
short-term average cost - a smiley
demand - straight line dipping to the right

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