When 6 units of output are produced -
Average fixed cost (AFC) = $25 per unit
Average variable cost (AVC) = $25 per unit
Calculate Total Fixed Cost (TFC) -
TFC = AFC * Output = $25 * 6 = $150
Calculate Total Variable Cost (TVC) -
TVC = AVC * Output = $25 * 6 = $150
Calculate Total Cost (TC) -
TC = TFC + TVC = $150 + $150 = $300
Thus,
At 6 units of output, total fixed cost is $150 and total cost is $300.
