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In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $0.50. Therefore, the firms total costs:________
are $2.50.
are $1,250.
are $750.
are $1,100.

Respuesta :

weaambenyounes29

Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

GOOD LUCK

Answer:

$1,250

Explanation:

The total cost equals the fixed cost plus the variable cost.

The total fixed cost equals the average fixed cost ($0.50) multiplied by the output (500), which in this case equals $250.

The total variable cost equals the average variable cost ($2.00) multiplied by the output (500), which in this case is $1,000.

The total fixed cost ($250) plus the total variable cost ($1,000) is $1,250.

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