At its current short-run level of production, a firm's average variable costs equal $\backslash (20$per unit, and its average fixed costs equal $\backslash )30$per unit. Its total costs at this production level equal $\$2500$

$\left(a\right)$What is the firm's current output level?

$\left(b\right)$ What are its total variable costs at this output level?

$\left(c\right)$ What are its total fixed costs?

Fixed cost: It refers to the constant cost of production which remains same no matter the changewithin the level of output.
Variable cost: It refers to the value change with the change within the level of output. it's high atthe upper level of outputs and low at the lower level of outputs.
The sum of fixed charge and variable cost is up to the whole cost.
Average total cost: It results when the overall costis split by units of quantity produced. .

The firm's current production may be measured if the overall value and equilibrium price are provided. To compute output, use the following formula:

$\begin{array}{l}ATC=\frac{TC}{\text{output}}\\ TC=ATC\times \text{output}\end{array}$

$\begin{array}{l}TC=ATC\times \text{output}\\ TC=(AFC+AVC)\times \text{output}\end{array}$

$\begin{array}{l}\mathrm{\$}2,500=(\mathrm{\$}30+\mathrm{\$}20)\times \text{output}\\ \text{output}=\frac{\mathrm{\$}2,500}{\mathrm{\$}50}\\ \text{output}=50\end{array}$

The averaged overheads and output are used to compute total variable cost. The total overheads is calculated as follows:

$\begin{array}{l}AVC=\frac{TVC}{\text{output}}\\ 20=\frac{TVC}{50}\\ TVC=50\times 20\\ TVC=1,000.\end{array}$

The typical fixed cost and the number of items are used to compute total fixed cost. The fixed cost is calculated as follows:

$\begin{array}{l}AFC=\frac{TFC}{\text{output}}\\ 30=\frac{TFC}{50}\\ TFC=1,500.\end{array}$