Answer to Question #67744 in Economics of Enterprise for Antonette Nkalanga

Question #67744
Suppose a firm produces 20 units of output per month and has a total variable cost of R3 000 per month. If
its average fixed costs are R400 per month, what are its total costs per month?
1
Expert's answer
2017-04-26T10:47:08-0400
Total cost per month t is equal to sum of fixed and variable costs
Variable costs per month are R3000
Fixed costs per month are R400 (its not per unit, its per month!)
So total costs are 3000+400=R3400

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS