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

question 10

Multiple Choice

Charles'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.

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Definitions:

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring a deviation from standard pricing and production procedures.

Future Costs

Future costs are expected or estimated costs that will be incurred in the performance of future activities or business operations, guiding budgeting and planning processes.

Sunk Cost

Costs that have already been incurred and cannot be recovered.

Common Fixed Costs

Common fixed costs refer to expenses that remain constant for a business over a period, regardless of the level of production or sales activity.