If Average Total Cost Is $50 and Average Fixed Cost

question 215

Multiple Choice

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

• A)$1000.
• B)$700.
• C)$300.
• D)impossible to determine without additional information.

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Definitions:

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting that there is a statistically significant relationship between variables.

Non-directional

Refers to a type of hypothesis that does not predict the direction of the difference or relationship between variables.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, suggesting some effect or difference exists.

Non-directional

Pertains to hypotheses or tests that do not specify the direction of the expected differences or relationships.