Question

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.

Answer 1

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