# Assume a firm is currently producing 500 units of output, total costs are $24,000, and average...

## Question:

Assume a firm is currently producing 500 units of output, total costs are $24,000, and average fixed costs are $6. Based on this information we can conclude, with certainty, that the firm's:

A) average variable costs are $42.

B) total fixed costs are $21,000.

C) average total costs are $54.

D) marginal costs are $48.

## Context header: Total Cost

Total cost is the sum of a company's expenditures on the production components needed to produce goods and services. Total cost at various production levels is the total fixed and variable costs. TVC + TFC = TC.

## Answer and Explanation: 1

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View this answerThe correct answer is option **A) **

The average variable cost in economics is the variable cost per unit. The average variable cost is calculated by...

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Chapter 3 / Lesson 23Learn what is the average total cost. Learn its use, its formula, and how to apply it.

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