g of 25 8 complete escribed in the table shown below the av

g of 25 (8 complete) ? escribed in the table shown below. the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the neare Output Average Total Cost of Output $20,000 70,000 105,000 160,000 230,000 335,000 475,000 Average (microchips per day) Variable Cost () Fixed Cost ($) Total Cost ($) 25,000 50,000 75,000 100,000 125,000 150,000

Solution

Average Variable Cost (AVC) = variable cost (VC)/ output

Average Fixed Cost (AFC) = fixed cost (FC)/ output

Average Total Cost (ATC) = total cost (TC)/ output

FC = $20,000 as TC = 20,000 at 0 level of output, so fixed cost is $20,000 at all level of output as its name suggest it is fixed.

VC = TC - FC i.e., TC - 20,000

using these we will complete the table

** the image cuts the part that answer should round to the nearest... so i am just writing the original answers in the table**

Output	TC ($)	FC ($)	VC ($)	AVC ($)	AFC ($)	ATC ($)
0	20,000	20,000	0	---	----	---
25,000	70,000	20,000	70,000 - 20,000 = 50,000	50,000/25,000 = 2	20,000/25,000 = 0.8	70,000/25,000 = 2.8
50,000	105,000	20,000	105,000 - 20,000 = 85,000	85,000/50,000 = 1.7	20,000/50,000 = 0.4	105,000/50,000 = 2.1
75,000	160,000	20,000	140,000	1.866	0.266	2.133
100,000	230,000	20,000	210,000	2.1	0.2	2.3
125,000	335,000	20,000	315,000	2.52	0.16	2.68
150,000	475,000	20,000	455,000	3.033	0.133	3.166