Knowee
Questions
Features
Study Tools

Assume that in the short run, a firm which is producing 100 units of output has average total costs of $200 and average variable costs of $150. The firm's total fixed costs are:Group of answer choices$500.$0.50.$50 .$5000.

Question

Assume that in the short run, a firm which is producing 100 units of output has average total costs of 200andaveragevariablecostsof200 and average variable costs of 150. The firm's total fixed costs are:Group of answer choices500.500.0.50.50 .50 .5000.

🧐 Not the exact question you are looking for?Go ask a question

Solution

The firm's total fixed costs can be calculated by subtracting the average variable costs from the average total costs and then multiplying by the quantity of output.

Here's the step-by-step calculation:

  1. Subtract the average variable cost from the average total cost: 200200 - 150 = $50. This gives us the average fixed cost per unit.

  2. Multiply the average fixed cost per unit by the quantity of output: 50100=50 * 100 = 5000.

So, the firm's total fixed costs are $5000.

This problem has been solved

Similar Questions

A firm has fixed costs of $400, average total costs of $3 and average variable costs of $2.50. The output of the firm is _____________.

If you know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost isMultiple Choice$104.$930.$1,040.$1,130.

For 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. The total cost at this output level is ____________.

The following table shows cost data for a perfectly competitive firm. Output Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost1 $500 $120 $620 $1202 250 108 358 953 167 97 263 754 125 88 213 605 100 81 181 556 83 78 161 607 71 78 149 808 63 81 144 1059 56 87 143 13510 50 96 146 170 If the product price is $105, the profit-maximizing output isMultiple Choice0 units.5 units.8 units.9 units.

When it produces 100 units, a firm’s total variable cost is $300 and its total fixed cost is $2700. What is the average cost?1 point$3$24$27$30

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.