Question
uke engineering produces batteries for a major car-maker . Juke'smonthly cost structured is shown in the table below . Assume that the firm's average variable
uke engineering produces batteries for a major car-maker . Juke'smonthly cost structured is shown in the table below . Assume that the firm's average variable costs of production remain constant at all levels of output shown .
Output level ( batteries) Total Costs $
1000 50000
2000 80000
3000 110000
1- Calculate the average variable costs of production for juke engineering.
2- Calculate the value of its monthly total fixed costs .
3- Calculate the change in average costs of production if juke engineering increases its production from 1000 batteries per month to 3000 batteries per month
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