Respuesta :
The correct option is b. the firm's total cost $500.
Total cost:
Total fixed costs are the total of all recurring, fixed costs that a business incurs.
The variable and fixed expenses of providing commodities are combined to create a total using the total cost formula. The equation is:
Total cost = (Average fixed cost x average variable cost) × Number of units produced.
Cindy's Car Wash has average variable costs of $[tex]2[/tex] and average fixed costs of [tex]$3[/tex] when it produces [tex]100[/tex] units of output (car washes).
The firm's total cost is
AFC = $[tex]3[/tex], AVC = $[tex]2[/tex]
Average total cost = AFC + AVC = $[tex]5[/tex]
It produces [tex]100[/tex] units
$[tex]5[/tex] × [tex]100[/tex]= $[tex]500[/tex]
Therefore, option b is the answer $[tex]500[/tex].
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