Assume that in the short run a firm is producing 200 units of output, has average total costs of $250, and has average variable costs of $150. The firm's total fixed costs are.

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Quizplus · Accepted Answer

Total fixed costs can be calculated as the difference between total costs and total variable costs. Total costs are the average total costs multiplied by the quantity of output, which is $250 * 200 = $50,000. Total variable costs are the average variable costs multiplied by the quantity of output, which is $150 * 200 = $30,000. Therefore, total fixed costs are $50,000 - $30,000 = $20,000.

Assume That in the Short Run a Firm Is Producing