Question

In the short run the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm's total costs: Group of answer choices are $2.50. are $1100. are $750. are $1250.

Answer 1

Answer:

the total cost of the firm is $1,250

Explanation:

The computation of the total cost is shown below:

Total cost = Average total cost × quantity

= (average fixed cost + average variable cost) × quantity

= ($0.50 + $2) × 500 units

= $2.50 × 500 units

= $1,250

hence, the total cost of the firm is $1,250