Chapter 3.3, Problem 8E

Total Cost The background for this exercise can be found in Exercises 13 and 14 in Section 3.2. The following table gives the total cost C, in dollars, for a widget manufacturer as a function of the number N of widgets produced during a month.

Number N	Total cost C
200	7900
250	9650
300	11, 400
350	13, 150

a. What are the fixed costs and variable cost for this manufacturer?

b. The manufacturer wants to reduce the fixed costs so that the total cost at a monthly production level of 350 will be $12, 975. What will the new fixed costs be?

c. Instead of reducing the fixed costs as in part b, the manufacturer wants to reduce the variable cost so that the total cost at a monthly production level of 350 will be $12, 975. What will the new variable cost be?