Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total variable costs are.
A)$15,000.
B)$20,000.
C)$50.
D)$5,000.

Question

Quizplus · Accepted Answer

Total Variable Costs (TVC) can be calculated by multiplying the Average Variable Costs (AVC) by the quantity of output. Here, AVC = $150 and the quantity of output = 100 units. Therefore, TVC = $150 * 100 = $15,000.

Assume That in the Short Run a Firm Is Producing