Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Output Fixed CostVariable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable CostAverage Total Cost (Instructional modules per month) (Dollars) (Dollars) (Dollars) (Dollars) 0 1,080 1 1,080 400 1480 400 2 450 3 1,350 2,430 4 1,900 (Dollars per unit) (Dollars per unit) (Dollars per unit) 5 2,500 216 6 4,280 700 7 4,100 8 5,400 135 9 7,300 10 10,880 er to Table 13-10. What is the average fixed cost for the month if 9 instructional modules are produced? 475 980 965

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
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Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office
building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
Output
(Instructional
Fixed CostVariable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost
(Dollars) (Dollars)
(Dollars)
(Dollars per unit) (Dollars per unit)
(Dollars per unit)
(Dollars)
modules per month)
0
1,080
1
1,080
400
1480
400
2
3
4
450
1,350
2,430
1,900
5
2,500
216
6
4,280
700
7
4,100
8
5,400
135
9
7,300
10
10,880
er to Table 13-10. What is the average fixed cost for the month if 9 instructional modules are produced?
475
980
965
8:2
Transcribed Image Text:Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Output (Instructional Fixed CostVariable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars per unit) (Dollars per unit) (Dollars per unit) (Dollars) modules per month) 0 1,080 1 1,080 400 1480 400 2 3 4 450 1,350 2,430 1,900 5 2,500 216 6 4,280 700 7 4,100 8 5,400 135 9 7,300 10 10,880 er to Table 13-10. What is the average fixed cost for the month if 9 instructional modules are produced? 475 980 965 8:2
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