Omar's Car Wash has average variable costs of $4 and average fixed costs of $5 when it produces 200 units of output (car washes). The firm's total cost is
A)$800.
B)$1,000.
C)$200.
D)$1,800.

Question

Quizplus · Accepted Answer

The total cost is calculated by adding total variable costs and total fixed costs. Total variable costs are $4 * 200 = $800, and total fixed costs are $5 * 200 = $1,000. Therefore, the total cost is $800 + $1,000 = $1,800.

Omar's Car Wash Has Average Variable Costs of $4 and Average