Question 4: Your firm pays 5000 per month in fixed costs. You also pay 12 per unit to produce your product.Assume that you produce 1000 A) What is your total cost? B) What is your average cost? C) What is your marginal cost?

) The total cost is the sum of the fixed costs and the variable costs. In this case, the fixed costs are $5000 per month and the variable costs are $12 per unit. Since you produce 1000 units, the total cost would be $5000 + ($12 * 1000) = $15000.<br /><br />B) The average cost is the total cost divided by the number of units produced. In this case, the total cost is $15000 and the number of units produced is 1000. So, the average cost would be $15000 / 1000 = $15 per unit.<br /><br />C) The marginal cost is the additional cost incurred by producing one more unit of a good. In this case, the marginal cost is the variable cost per unit, which is $12.