Question

At its current​ short-run level of​ production, a​ firm's average variable costs equal ​$25 per​ unit, and its average fixed costs equal ​$10 per unit. Its total costs at this production level equal ​$2,100. What is the​ firm's current output​ level? nothing units. What are its total variable costs at this output​ level? ​$ nothing. What are its total fixed​ costs? ​$ nothing.

Answer 1

• Current output level ⇒ 60 units
• Total variable costs ⇒ $1,500
• Total fixed costs ⇒ $600

Step-by-step explanation:

Variable costs are $25 per unit and Fixed costs are $10 per unit.

Total costs are therefore:

= 25 + 10

= $35

Current output level:

= Total costs / Unit costs

= 2,100 / 35

= 60 units.

Total variable costs:

= Unit variable cost * number of units

= 25 * 60

= $1,500

Total Fixed costs:

= Total costs - Variable costs

= 2,100 - 1,500

= $600