A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs.
Marginal Cost (MC): $5 per unit
Fixed Cost (FC): $20
Total Cost (TC): $25
Average Variable Cost (AVC): $5
FC is always going to be constant at $20; however, VC is the change in cost as an increase in cost of product to produce more.