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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.
âº the cost of producing one single product, calculated by dividing the cost of producing a group of products by the number produced: 1  Average unit costs for SMEs have risen for the 18th quarter in succession. 2  higher/lower unit costs. 3  reduce/cut unit costs Firms can still cut their unit costs by expanding their markets.