The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is true?
A) Marginal cost of the 251st sundae is $1,250.
B) Average total cost is minimized at an output greater than 250 sundaes.
C) Average fixed cost is minimized at an output less than 250 sundaes.
D) Total cost of producing 250 sundaes is $1,250.

Question

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The Answer of The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is true?
A) Marginal cost of the 251st sundae is $1,250.
B) Average total cost is minimized at an output greater than 250 sundaes.
C) Average fixed cost is minimized at an output less than 250 sundaes.
D) Total cost of producing 250 sundaes is $1,250.

The Average Variable Cost of Producing 250 Sundaes Is $5