The xyz widget factory can produce 80 widgets in a day at a total cost of $8,000 and it can produce 100 widgets a day at a total cost of $10,000.

a. what are the company's daily fixed costs and marginal cost per widget?

Fixed cost : The type of cost that will stay the same regardless how much products you created.

Cost per unit for 80 widgets : 8000/80 = $1,000

Cost per unit for 100 widgets: $10,000/100 = $1,000

In this case, the fixed cost is 0.

Marginal Cost

Change in Total Cost / Change in Quantity produce

= ($10,000 - $ 8,000) / (100 - 20)

= $ 2,000/20

= $1,000