In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs

A) are $2.50.
B) are $1,250.
C) are $750.
D) are $1,100.

Question

Destiny Jones · Accepted Answer

Final Answer : B, Explanation :  Total costs include both variable and fixed costs. The average total cost per unit is $2.50 ($2.00 AVC + $.50 AFC). Multiplying this by the output (500 units) gives $1,250.

In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs

A) are $2.50.
B) are $1,250.
C) are $750.
D) are $1,100.

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Related questions

In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costsA) are $2.50.B) are $1,250.C) are $750.D) are $1,100.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs

A) are $2.50.
B) are $1,250.
C) are $750.
D) are $1,100.