The cost structure of a manufacturer of micro-chips is described in the table that follows. Thefirm's fixed costs equal $10,000 per day. Calculatethe average variable cost, average fixed cost, andaverage total cost at each output level.Output (microchipsper day)Total Cost of Output($ thousands)102560509575150100220125325150465

Computation with the help of following formula, AVC = VC/O ATC = TC/O AFC = FC/O VC = TC-FC…

ips is described in the table that follows -m's fixed costs equal $10,000 per day. Ca e average variable cost, average fixed cos erage total cost at each output level. Total Cost of Outp ($ thousands) Output (microchips per day) 10 25 60 50 95 75

ips is described in the table that follows -m's fixed costs equal $10,000 per day. Ca e average variable cost, average fixed cos erage total cost at each output level. Total Cost of Outp ($ thousands) Output (microchips per day) 10 25 60 50 95 75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The cost structure of a manufacturer of micro-
chips is described in the table that follows. The
firm's fixed costs equal $10,000 per day. Calculate
the average variable cost, average fixed cost, and
average total cost at each output level.
Output (microchips
per day)
Total Cost of Output
($ thousands)
10
25
60
50
95
75
150
100
220
125
325
150
465

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