Question

At its current​ short-run level of​ production, a​ firm's average variable costs equal ​$15 per​ unit, and its average fixed costs equal ​$10 per unit. Its total costs at this production level equal ​$500. What is the​ firm's current output​ level? nothing units.

Answer 1

20 units

Step-by-step explanation:

Let;

TC = Total cost = $500

AVC = Average variable cost = $15

AFC = Average fixed cost = $10

Q = Quantity = ?

( AVC + AFC)Q = TC

Substituting the values and solve for Q, we have:

($15 + $10)Q = $500

$25Q = $500

Q = $500/$25

Q = 20 units

Therefore, the​ firm's current output​ level is 20 units.