Final answer:
The firm is producing 300 units per day, calculated by dividing the total costs of $48,000 by the sum of the average variable cost and average fixed cost, which together yield an average total cost of $160 per unit.
Step-by-step explanation:
To determine how many units the firm is producing per day, we must first understand that total cost (TC) equals the sum of variable cost (VC) and fixed cost (FC). The firm's total costs of production are given as $48,000 per day. We are also given the average variable cost (AVC) of $60 per unit and the average fixed cost (AFC) of $100 per unit. To find the quantity of units (Q), we need to calculate the average total cost (ATC), which is the sum of AVC and AFC, and then divide the total cost by ATC.
The ATC is $160 per unit (AVC of $60 + AFC of $100). Therefore, Q = TC / ATC. Plugging in the values, we get Q = $48,000 / $160, which equals 300 units. Hence, the firm is producing 300 units per day.