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 (i.e., its chips are just like every other producers’
chips). HSE has hired you to do undertake three tasks:
1. Perform a statistical analysis of its short-run production costs to estimate its total variable cost
function, average variable cost function, and marginal cost function. HSE believes its total fixed
costs will be $6,500 per month, so you do not need to estimate TFC.
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