Firm X is producing 1000 units,selling them at $15 each.Variable costs are $3 per unit and the firm is making an accounting profit of $3000.What is the firm's fixed costs?

Question

​Firm X is producing 1000 units,selling them at $15 each.Variable costs are $3 per unit and the firm is making an accounting profit of $3000.What is the firm's fixed costs?

Quizplus · Accepted Answer

Fixed costs = Total costs - Variable costsTotal costs = Accounting profit + Variable costsTotal costs = $3000 + ($3 x 1000) = $6000Fixed costs = $6000 - $3000 = $3000

​Firm X Is Producing 1000 Units,selling Them at $15 Each

Firm X Is Producing 1000 Units,selling Them at $15 Each