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 costs are.
A)$50,000.
B)$30,000.
C)$100.
D)$20,000.

Question

Quizplus · Accepted Answer

Total costs are calculated by multiplying the average total cost by the quantity of output. Here, $250 (average total cost) * 200 (units) = $50,000.

Assume That in the Short Run a Firm Is Producing