ort-run cost curves for display (LCD) screens for cell phones. s of producing 300 LCD screens? $999 (Round your answer to the of producing 300 LCD screens per day? $ (Round your answer to C... Costs (dollars per LCD screen) 12.00 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00 5.00 4.25 4.00-.. 3.33 ....... 3.00- 2.00- 1.00 0.00+ 0 200 300 :200:50 AVC 400 600 800 200 Output (LCD screens per day) AFC 1000

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

What are the total variable costs of producing

]300

LCD screens per​ day?

The diagram to the right displays short-run cost curves for
a facility that produces liquid crystal display (LCD) screens for cell phones.
a. What are the daily total fixed costs of producing 300 LCD screens? $999 (Round your answer to the
nearest penny.)
b. What are the total variable costs of producing 300 LCD screens per day? $
the nearest penny.)
(Round your answer to
Costs (dollars per LCD screen)
12.00-
11.00-
10.00-
9.00-
8.00-
7.00-
6.00-
5.00
4.00
3.00-
2.00-
5.00
4.25
3.33
1.00-
0.00+
0
200:300
+
AVC
400
600
200
800
Output (LCD screens per day)
AFC
1000
Transcribed Image Text:The diagram to the right displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones. a. What are the daily total fixed costs of producing 300 LCD screens? $999 (Round your answer to the nearest penny.) b. What are the total variable costs of producing 300 LCD screens per day? $ the nearest penny.) (Round your answer to Costs (dollars per LCD screen) 12.00- 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00 4.00 3.00- 2.00- 5.00 4.25 3.33 1.00- 0.00+ 0 200:300 + AVC 400 600 200 800 Output (LCD screens per day) AFC 1000
Expert Solution
Step 1: Define total cost

Fixed cost is the cost that remains same at all levels of output. 
Variable cost refers to the cost that changes at all levels of output. 
Total cost is the sum of Fixed cost and variable cost.

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