A perfectly competitive firm is producing 50 units of output and selling at the market price of $23.The firm's average total cost is $20.What is the firm's total cost?
A) $23
B) $150
C) $1,000
D) $1,150
E) $20

Question

Quizplus · Accepted Answer

The firm's total cost can be calculated by multiplying the average total cost by the quantity of output. So, $20 (average total cost) * 50 (units of output) = $1,000.

A Perfectly Competitive Firm Is Producing 50 Units of Output