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EconomicsQ&A LibraryThe cost structure of a manufacturer of microchips is described in the table in the next column. The firm’s fixed costs equal to $10 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. Output (microchips per day)Total Cost of Output ($ thousands)0102560509575150100220125325150465Question

Asked Dec 3, 2019

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The cost structure of a manufacturer of microchips is described in the table in the next column. The firm’s fixed costs equal to $10 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level.

Output (microchips per day) |
Total Cost of Output |

0 |
10 |

25 |
60 |

50 |
95 |

75 |
150 |

100 |
220 |

125 |
325 |

150 |
465 |

Step 1

**Average total cost:**

Average total cost can be calculated by using the following formula:

Step 2

**Average fixed cost:**

Average fixed cost can be calculated by using the following formula:

Step 3

**Average variable cost:**

Average variable cost can be calcula...

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