Cindy's Car Wash Has Average Variable Costs of $2 and Average

question 123

Multiple Choice

Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes) . The firm's total variable cost is

• A)$100.
• B)$200.
• C)$300.
• D)$500.

---

Definitions:

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods or services.

Least-Cost Combination

An economic principle where firms aim to achieve the lowest possible cost of production by efficiently combining resources.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Total Dollars

The aggregate or total amount of money without adjusting for factors such as inflation or purchasing power.