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Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes). The firm's total variable cost is A. $300. B. $200. C. $500. D. $100.

Respuesta :

Answer:

$200

Explanation:

Total variable cost = average variable cost × quantity

$2 × 100 = $200

Variable cost is cost that varies with production.

If production increases, variable cost increases and if production reduces, variable cost falls. E.g. cost of Labour

Fixed cost is cost thay does not vary with production e.g. rent

I hope my answer helps you

Parrain

Based on the per unit variable costs of Cindy's Car Wash, the firm's total variable costs are B. $200.

What are the total variable costs?

Cindy's Car Wash incurs a variable cost of $2 per car wash.

If there are a 100 car washes, the total variable costs would be:

= Variable cost per wash x Number of washes

Solving gives:

= 2 x 100

= $200

Find out more on variable costs at https://brainly.com/question/5965421.

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