A Firm Produces 100 Units of Output at an Average

question 3

Multiple Choice

A firm produces 100 units of output at an average variable cost of $5 and incurs a total fixed cost of $700. Which of the following is true?

• A) The firm's average total cost is $12.
• B) The firm's total variable cost is $1,200.
• C) The firm's marginal cost is constant and equal to $5.
• D) The firm's average fixed cost is $5.
• E) The firm's total cost is $500.