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A new computer firm analysed its cost function for the past 12 months. The firm pays $2000 every month for rent and an annual fee of $2500 for insurance. Although the cost of raw materials changed constantly, the firm was surprised at the total amount of $300 to be paid to suppliers given its output for the year. Finally for each additional worker that the firm employed, it incurred the following costs of $3, $3.25, $3.50,$3.75, $4 to produce each additional unit output.

From the data given for the computer firm, calculate EACH of the following costs:

Fixed costs

Total cost

Marginal cost

Answer :

Answer:

fixed cost-26, 500

marginal cost-314. 50

total including both fixed and marginal add the two- 26,814.50

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