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The average cost of producing a tomato unit and the average variable cost are k2 and k1 respectively. Calculate the fixed and total cost of producing 1000 units of tomato

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Final answer:

To calculate the fixed cost, multiply the average cost of producing a tomato unit (k2) by the total units produced (1000). To calculate the total cost, multiply the average variable cost (k1) by the total units produced (1000) and add it to the fixed cost.

Step-by-step explanation:

The fixed cost of producing tomato units remains constant regardless of the level of production. The average variable cost, on the other hand, represents the cost that varies with the level of production. Let k1 be the average variable cost and k2 be the average cost of producing a tomato unit.

To calculate the fixed cost, multiply the average cost of producing a tomato unit (k2) by the total units produced (1000):

Fixed Cost = k2 * Total Units Produced

Fixed Cost = k2 * 1000

To calculate the total cost, multiply the average variable cost (k1) by the total units produced (1000) and add it to the fixed cost:

Total Cost = (k1 * Total Units Produced) + Fixed Cost

Total Cost = (k1 * 1000) + (k2 * 1000)

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