Q. Conclusion at Harding Silicon Enterprises, Inc.

Harding Silicon Enterprises, Inc. produces less than 1% of the world's supply of 32 MB random access memory (RAM) chips for electronic devices. HSE's RAM chips perform according to globally accepted performance standards for this type of silicon chip that is its chips are just like every other producers chips. HSE has appointed you to do accept three tasks:

Perform a statistical analysis of its short-run production costs to estimate its total variable cost function, average variable cost function, as well as marginal cost function. HSE believes its total fixed costs will be $6,500 per month, so you do not need to estimate TFC.