Essay
DigiWatch plans to open a new production facility to produce digital watches.The firm's estimates based on previous experience suggests that the fixed costs of the plant will be $366,000 per year,and that average variable cost will be: AVC = $7.00 + $0.002Q.
(a)Compute the total cost [C] and average cost [AC] for the first year of production at an output of 6,000 watches.
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