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Q

Economics of enterprise task

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?
A

Total cost per month is equal to sum of fixed and variable costs
Variable costs per month are R 3 000
Fixed costs per month are R400 (its not per unit, its per month!)
So,
Total costs are 3 000+400=R3 400

2 months ago
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