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At an output of 10,000 units per year, a firm's total variable costs are $50,000 and its average fixed costs are $2. The total costs per year for the firm are.
The cost per unit is commonly derived when a company produces a large number of identical products. The cost is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.he cost per unit is commonly derived when a company produces a large number of identical products. The cost is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.