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A firm's total output is 1500 units. The same firm's average variable cost is equal to $5 while its average fixed cost is equal to $15. How much is the firm's total cost of production
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A firm's total output is 1500 units. The same firm's average variable cost is equal to $5 while its average fixed cost is equal to $15. How much is the firm's total cost of production

User Tushar Mate
by
3.0k points

1 Answer

4 votes

Answer:

$30,000

Step-by-step explanation:

Total cost of production = Total unit cost x units produced

hence,

Total cost of production = ($5 + $15) x 1500 units

= $30,000

The firm's total cost of production is $30,000

User Marek Maurizio
by
3.6k points
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