The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $10,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) $10,000 60,000 20,000 45,000 95,000 70,000 150,000 95,000 220,000 120,000 325,000 145,000 465,000

The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $10,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) $10,000 60,000 20,000 45,000 95,000 70,000 150,000 95,000 220,000 120,000 325,000 145,000 465,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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