Tankao makes Bluetooth sets for mobile devices. When 50 Bluetooth sets are produced in the short run, the average variable cost is $30. Tankao's average _____ cost is _____.
A) total; $30.
B) total; greater than $30.
C) total; less than $30.
D) fixed; $30.

Question

Quizplus · Accepted Answer

The average total cost includes both the average variable cost and the average fixed cost, so it must be greater than the average variable cost of $30.

Tankao Makes Bluetooth Sets for Mobile Devices