Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is
A)$100.
B)$200.
C)$300.
D)$500.

Question

Quizplus · Accepted Answer

Total cost is calculated by adding total variable costs and total fixed costs. Total variable costs are $2 * 100 = $200, and total fixed costs are $3 * 100 = $300. Therefore, total cost is $200 + $300 = $500.

Cindy's Car Wash Has Average Variable Costs of $2 and Average