Answer:
The total cost is $1,325.
Explanation:
A firm produces 25 units of a product.
The average fixed cost or fixed cost per unit is $20 per unit.
The total variable cost is $625.
If the firm decides to produce 35 units, the total cost will be equal tot he sum of total variable cost and total fixed cost.
Total Fixed Cost
= [tex]Fixed\ cost\ per\ unit\times Number\ of\ units[/tex]
= [tex]\$ 20 \times 35[/tex]
= $700
Total variable cost is given as $625.
The total cost is
= $625 + $700
= $1,325
