In the short run,a firm 's output level is 10 units.Its total cost is $4000 and its average fixed cost is $100.What is this firm's average variable cost (AVC)of producing 10 units?
A) AVC = $250
B) AVC = $275
C) AVC = $300
D) AVC = $400

Question

Quizplus · Accepted Answer

The total fixed cost (TFC) is $100 * 10 = $1000. The total variable cost (TVC) is $4000 - $1000 = $3000. The average variable cost (AVC) is $3000 / 10 = $300.

In the Short Run,a Firm 'S Output Level Is 10