Question

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

Answer 1

Answer:

$30,000

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