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The cost structure of a manufacturer of microchips is described in the table shown below. The...

The cost structure of a manufacturer of microchips is described in the table shown below.

The firm's fixed costs equals $20,000 per day. Calculate the average variable cost, average fixed cost and average total cost at each output level.

Output Total Cost of output

0 $20,000

20,000 $70,000

45,000 $105,000

70,000 $160,000

95,000 $230,000

120,000 $335,000

145,000 $475,000

0 0
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