Question

Suppose a firm produces 15 units of output per month and has a total variable cost of R5 000 per month. If its average fixed costs are R350,what are the total coat per month?

Answer 1

$Total\ Costs= Total Fixed Costs+Total\ variable\ Cost\\ But\ Average\ Variable\ Fixed\ Costs=\frac{Total Fixed\ cost}{Quantity}\\ \implies\ Total\ fixed\ costs=Quantity\times\ Average\ variable\ fixed\ costs\\ =15\times350=5,250\\ Total\ Costs =5,250+5,000\\ =R10,250$