Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is
A) $306.
B) $400.
C) $600.
D) $1,000.

Question

Quizplus · Accepted Answer

The total cost is the sum of total fixed costs and total variable costs. The total fixed cost is the average fixed cost multiplied by the quantity produced, which is $6 * 100 = $600. Adding the total variable cost of $400 gives a total cost of $600 + $400 = $1,000.

Wilbur's Widgets, a Widget Company, Produces 100 Widgets