If a firm produces 10 units of output, total costs are $1,030, and average fixed costs are $10, then total variable costs are
A)$104.
B)$930.
C)$1,040.
D)$1,130.

Question

Quizplus · Accepted Answer

Total variable costs can be calculated by subtracting total fixed costs from total costs. Total fixed costs are average fixed costs multiplied by the quantity of output, which is $10 * 10 = $100. Therefore, total variable costs are $1,030 (total costs) - $100 (total fixed costs) = $930.

If a Firm Produces 10 Units of Output, Total Costs