The total product is 10 units.The average total cost is $30 and the average fixed cost is $10.What is the amount of the total variable cost?
A) $20
B) $200
C) $300
D) $10
E) It is impossible to determine with the information given.

Question

Quizplus · Accepted Answer

Total Variable Cost (TVC) can be calculated by subtracting total fixed costs (TFC) from total costs (TC). Given that the average total cost (ATC) is $30 for 10 units, TC = $30 * 10 = $300. The average fixed cost (AFC) is $10 for 10 units, so TFC = $10 * 10 = $100. Therefore, TVC = TC - TFC = $300 - $100 = $200.

The Total Product Is 10 Units