At its current short-run level of production, a firm's average variable costs equal $20 per unit, and its average fixed costs equal $30 per unit. Its total costs at this production level equal $2,500. A. What is the firm's current output level? B. What are its total variable costs at this output level? C. What are its total fixed costs?

Question

Engineering

Timothy Graves

25 June, 16:28

At its current short-run level of production, a firm's average variable costs equal $20 per unit, and its average fixed costs equal $30 per unit. Its total costs at this production level equal $2,500. A. What is the firm's current output level? B. What are its total variable costs at this output level? C. What are its total fixed costs?

+4

Answers (2)

Know the Answer?

Jaqueline Hooper · Answer 1

12 4

Explanation:

because the production average is variable

Friday · Answer 2

Answer and Explanation:

The computation is shown below

Total average cost + total variable cost = total cost

Let number of output be x

So,

Total fixed average cost = x * $30

Total variable cost = x * $15

Total cost = $2,500

Therefore,

$20 * x + $30 * x = $2,500

50 * x = $2,500

x = 50

Now the total variable cost is

= 50 * $20

= $1,000

And, the fixed cost is

= 50 * $30

= $1,500