Miller technologies has average variable costs of $6 and average total costs of $10 when it produces 1,000 units of output. the firm's total fixed costs equal

Given: -

Average variable cost/unit = $6

Average total cost/unit = $10

Units = 1000

To find: - Total fixed cost.

Solution:

Fixed cost = Total cost â€" Variable cost

Fixed cost = $10 - $6

Fixed cost = $4 = fixed cost per unit

Total fixed cost = $4*1000 = $4,000 Firm's total fixed cost is $4,000.