If Average Total Cost Is $50 and Average Fixed Cost

question 79

Multiple Choice

If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total variable cost at that level of output is

• A)$1,000.
• B)$700.
• C)$300.
• D)impossible to determine without additional information.

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Definitions:

French Fries

Refers to the popular side dish made from potatoes that are cut into strips and fried.

Utility

In economics, a measure of the satisfaction or happiness that individuals get from consuming goods and services.

Good X

Placeholder term often used in economic models to represent a generic good or product.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from each additional unit decreases.