'Suppose a firm is producing 1,000 units of output Its average fixed costs are $100. Its average variable costs are $50.What is the total cost of producing 1,OOOunits of output?'
Added by Shane B.
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Total cost (TC) is the sum of total fixed costs (TFC) and total variable costs (TVC). The formula to calculate total cost is TC = TFC + TVC. Show more…
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Key Concepts
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Assume that in the short-run, a firm is producing 100 units of output. The average total cost is $200, and the average fixed cost is $50. How much is the total variable cost?
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