Question

In: Economics

Assume that in the short run a firm is producing 100 units of output, has average...

Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average fixed costs of $20. The firm's total variable cost at this output level is A) $120. B) $80. C) $8,000. D) $12,000.

Solutions

Expert Solution

average variable cost=average total cost -average fixed cost

=100-20

=80

total variable cost=AVC*Q=80*100=8000

option C

the firm's total variable cost at this output level is $8000

Rahul Sunny answered 2 years ago
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