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CFA Level 1
Economics

Calculating Average Total Cost for a Competitive Firm

Hard Microeconomics Cost Of Production

Consider a firm that operates in a competitive market and is currently producing at a level where the price of the product is equal to its marginal cost. The firm faces the following cost structure for its production:

Fixed Costs: $50,000

Variable Costs per unit: $10

Currently, the firm is producing 10,000 units. Given this information, what is the average total cost (ATC) for the firm?

Hint

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