Question

The xyz widget factory can produce 80 widgets in a day at a total cost of $8,000 and it can produce 100 widgets a day at a total cost of $10,000.
a.what are the company's daily fixed costs and marginal cost per widget?

Answer 1

Fixed cost : The type of cost that will stay the same regardless how much products you created.
Cost per unit for 80 widgets : 8000/80 = $1,000
Cost per unit for 100 widgets: $10,000/100 = $1,000
In this case, the fixed cost is 0.

Marginal Cost 
Change in Total Cost / Change in Quantity produce

= ($10,000 - $ 8,000) / (100 -20)

= $ 2,000/20

= $1,000

Answer 2

Answer:

Fixed cost per widget is $0                                                                     and marginal cost per widget is $100

Step-by-step explaination:

Given that xyz widget factory can produce 80 widgets in a day at a total cost of $8,000 and also  it can produce 100 widgets a day at a total cost of $10,000.

Now, we have to find company's daily fixed costs and marginal cost per widget.

the points are (80, 80,000) & (100, 10,000)

the equation can be written as $y-y'=\frac{y_{2}-y_{1}}{x_{2}-x_{1}} (x-x')$

⇒  $y-8000=\frac{10,000-8,000}{100-80} x-80$

⇒ $y-8000=100x-8000$

⇒ y=100x + 0

& by comparing with $y= (marginal\thinspace cost)x + (fixed\thinspace cost)$, we get

The company's daily fixed costs and marginal costs are $0 and $100 resp.