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Talja [164]
3 years ago
12

If a firm produces 10 units of output, total costs are $1,030, and average fixed costs are $10, then total variable costs are

Business
1 answer:
skad [1K]3 years ago
3 0

Answer:

Total variable costs =$930

Explanation:

Total cost is the sum of total fixed cost and total variable cost. Hence given the average fixed cost , we can work-out the total variable cost.

This  is done as follows:

Total fixed costs = average fixed costs × number of units

                         = $10 × 10= $100.

Total variable costs = Total cost - total fixed cost

                               = $1,030 - $100

                               =$930

Total variable costs =$930

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