At IDNLearn.com, find answers to your most pressing questions from experts and enthusiasts alike. Ask your questions and receive comprehensive and trustworthy answers from our experienced community of professionals.
Sagot :
The correct option is b. the firm's total cost $500.
Total cost:
Total fixed costs are the total of all recurring, fixed costs that a business incurs.
The variable and fixed expenses of providing commodities are combined to create a total using the total cost formula. The equation is:
Total cost = (Average fixed cost x average variable cost) × Number of units produced.
Cindy's Car Wash has average variable costs of $[tex]2[/tex] and average fixed costs of [tex]$3[/tex] when it produces [tex]100[/tex] units of output (car washes).
The firm's total cost is
AFC = $[tex]3[/tex], AVC = $[tex]2[/tex]
Average total cost = AFC + AVC = $[tex]5[/tex]
It produces [tex]100[/tex] units
$[tex]5[/tex] × [tex]100[/tex]= $[tex]500[/tex]
Therefore, option b is the answer $[tex]500[/tex].
Learn more about total cost here brainly.com/question/25369053
#SPJ4
Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. Your questions are important to us at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.
