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

question 641

Multiple Choice

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

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

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Corporate Ownership

Refers to the ownership of shares in a corporation, determining the distribution of control and benefits among shareholders.

Dividends

Payments made by a corporation to its shareholders, often derived from profits.

Bring Suit

To initiate a legal action against someone in a court of law.