Each of the following situations describes a firm’s production and
costs during a given year.
a. Firm A is producing 20 000 units of output, incurring a total cost of $1000 000 and total variable cost of $600 000. What is Firm A’s average fixed cost?

b. Firm B is producing 20 000 units of output, incurring a total cost of $100 000 and total fixed cost of $20 000. What is Firm B’s average variable cost?

c. Firm C is producing 750 units of output. Average variable cost is $10 per unit and average fixed cost is $5 per unit. What is Firm C’s total cost?

d. Firm D is producing 400 units of output. Average total cost is $12 and average fixed cost is $4. What is Firm D’s total variable cost?

e. Firm E is producing 1 250 000 units of output, incurring a total cost of $20 million and total variable cost of $18 million. What is Firm E’s average fixed cost?