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At one unit of production, fixed costs are $50 and variable costs are $20. Assume that the variable costs increase at a constant rate. At 5 units of production, variable costs are ________, while fixed
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At one unit of production, fixed costs are $50 and variable costs are $20. Assume that the variable costs increase at a constant rate. At 5 units of production, variable costs are ________, while fixed costs are ________ in the short run.

User Siddu Hadapad
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1 Answer

24 votes
24 votes

Answer:

($50FV) and ($20VC)

Step-by-step explanation:

$100 , $50 At unit 1, Fixed cost (FC) is $50 and variable cost (VC) is $20. since in the short run fixed cost doesn't change with the level of production. It remains constant at every level of output.

User Lajos Molnar
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