The cost curve for producing widgets passes through the following points and is

Question

The cost curve for producing widgets passes through the following points and is piecewise linear in between Units produced Costs 600 0 $520 200 $1,200 400 $1,600 $1,720 a. What is the fixed cost of producing 600 widgets? b. What is the variable cost of producing 600 widgets? $ Round your answer to the nearest whole dollar. The tolerance is +/- $1.00. 4. c. What is the cost per unit if only 400 widgets are produced?$ d. What is the incremental cost of producing the 100th widget? e. What is the incremental cost of producing the 500th widget? f. What is the fixed cost per unit for producing 1,000 widgets? $ g. What is the variable cost per unit for producing 1,000 widgets? unit unit /unit Round your answers for items c, d, e, f and g to 2 decimal places. The tolerance is +/- $0.01.

Explanation / Answer

1. Fixed cost=520

2. Variable cost=1720-520=1200

3. Cost per unit=1600/400=4

4. Incremental cost=(1200-520)/(200-0)=3.4

5. Incremental cost=(1600-1200)/(400-200)=2

P.S.: Have answered more than 4

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