Answer to Question #127263 in Economics of Enterprise for Veve

Question

Suppose a firm produces 15 units per month and has a total variable cost of R5000 per month. If it's average fixed cots are R350 per month, what are its total costs per month?

Answer 1

Answer=10,250

Explanation:

Computation of the total costs per month: -

 

Total costs = Total variable cost + Total fixed cost

 Thus

= 5,000 + (350 * 15)

 

= 5,000 + 5,250

 

= 10,250