Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total costs are.
A)$20,000.
B)$15,000.
C)$50.
D)$5,000.

Question

Quizplus · Accepted Answer

Total costs can be found by multiplying the average total costs by the quantity of output. Here, it's $200 (average total cost) * 100 (units of output) = $20,000.

Assume That in the Short Run a Firm Is Producing