The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) 0 $15,000 − − − 25,000 65,000 50,000 100,000 75,000 155,000 100,000 225,000 125,000 330,000 150,000 470,000
The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) 0 $15,000 − − − 25,000 65,000 50,000 100,000 75,000 155,000 100,000 225,000 125,000 330,000 150,000 470,000
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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Question
The cost structure of a manufacturer of microchips is described in the table shown below.
The firm's fixed costs equal $15,000 per day. Calculate the average variable cost , average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.)
Output
(microchips per day)
|
Total Cost of
Output
|
Average
Variable Cost ($)
|
Average
Fixed Cost ($)
|
Average
Total Cost ($)
|
0
|
$15,000
|
−
|
−
|
−
|
25,000
|
65,000
|
|||
50,000
|
100,000
|
|||
75,000
|
155,000
|
|||
100,000
|
225,000
|
|||
125,000
|
330,000
|
|||
150,000
|
470,000
|
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