- Hilda’s Handbags Inc. is incurring total costs of production in the
short run of $30 000 per day. The firm’s average variable cost
equals $100 per unit and its average fixed cost equals $50 per
unit.
a. How many units is the firm producing per day?
b. What are the firm’s total variable costs at this output
level?
c. What are the firm’s total fixed costs at this output level?
