Tony's Taco Truck has average variable costs of $1 and average fixed costs of $2 when it produces 50 units of output (tacos). The truck's total cost at 50 units of output is
A)$3.
B)$50.
C)$100.
D)$150.

Question

Tony's Taco Truck has average variable costs of $1 and average fixed costs of $2 when it produces 50 units of output (tacos). The truck's total cost at 50 units of output is
A)​$3.
B)​$50.
C)​$100.
D)​$150.

Quizplus · Accepted Answer

The total cost is the sum of total variable costs and total fixed costs. At 50 units, total variable costs are $1 * 50 = $50, and total fixed costs are $2 * 50 = $100. Therefore, the total cost is $50 + $100 = $150.

Tony's Taco Truck Has Average Variable Costs of $1 and Average