If Average Fixed Costs Equal $60 and Average Total Costs

question 214

Multiple Choice

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be

• A) $40.
• B) $60.
• C) $6,000.
• D) $8,000.

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Definitions:

Tax Returns

Official documents filed with tax authorities declaring income, profits, and losses to determine tax liability.

Post Office

A public institution responsible for mail collection, distribution, and delivery services.

Cash Payments

Transactions where payment for goods or services is made in the form of physical currency or coins.

Pet Store

A retail business specializing in selling animals, pet supplies, and services such as grooming and training.