A Firm Has Average Fixed Costs of $0

question 297

Multiple Choice

A firm has average fixed costs of $0.20 and average variable costs of $2.50 at an output of 500 units. The firm's total costs are therefore

• A) $1,250.
• B) $1,350.
• C) $1,150.
• D) $1,500.

---

Definitions:

Analyzing

The process of examining something methodically and in detail, typically in order to explain and interpret it.

Conventions Section

Part of a document or presentation that outlines standard practices, rules, or norms specific to a context or field.

Definition

A precise explanation of the meaning of a term or concept, typically providing clarity and context.

Inflammable

Capable of catching fire easily and burning rapidly.