Question

At one unit of production, fixed costs are $50 and variable costs are $20. Assume that the variable costs increase at a constant rate. At 5 units of production, variable costs are ________, while fixed costs are ________ in the short run.

Answer 1

($50FV) and ($20VC)

Step-by-step explanation:

$100 , $50 At unit 1, Fixed cost (FC) is $50 and variable cost (VC) is $20. since in the short run fixed cost doesn't change with the level of production. It remains constant at every level of output.