If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25,what is its total variable cost?
A)$320
B)$200
C)$650
D)$1,000

Question

​If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25,what is its total variable cost?
A)​$320
B)$200
C)$650
D)​$1,000

Quizplus · Accepted Answer

Average fixed cost is not relevant for determining total variable cost. Total variable cost is equal to the average variable cost multiplied by the quantity produced:
Total variable cost = Average variable cost x Quantity produced
Total variable cost = $25 x 8 = $200

​If a Firm Produces 8 Units of Output with Average

If a Firm Produces 8 Units of Output with Average