At an output level of 50 units per day, a firm has average total costs of $60 and average variable costs of $35. Its total fixed costs are
A)$925.
B)$1,250.
C)$1,750.
D)$3,000.

Question

Quizplus · Accepted Answer

Total fixed costs can be calculated by subtracting total variable costs from total costs. Total costs at 50 units are 50 * $60 = $3000. Total variable costs are 50 * $35 = $1750. Therefore, total fixed costs = $3000 - $1750 = $1250.

At an Output Level of 50 Units Per Day, a Firm