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In: Economics

Widgets Inc. produces widgets. If Widget's Fixed Costs are $16,000 and the Average Variable Costs of...

Widgets Inc. produces widgets. If Widget's Fixed Costs are $16,000 and the Average Variable Costs of producing an output of 50 widgets is $80, then Total Cost of producing that quantity of output is:

$4,000

$20,000

impossible to calculate with the information given

$400

Solutions

Expert Solution

Total costs = total fixed costs + total variable costs

Total fixed cost = $ 16,000

Total variable cost = Average variable cost × number of widgets = $80 × 50 = $4000

Total costs = 16000 + 4000 = $20,000

Rahul Sunny answered 2 years ago
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