In the short run, if average variable costs equal $60, average total costs equal $70, and output equals 100, the total fixed costs should equal.

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02-03-2022
Business

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In the short run, if average variable costs equal $60, average total costs equal $70, and output equals 100, the total fixed costs should equal.

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ewomazinoade ewomazinoade · Answer 1 · 2022-03-15T08:13:01-04:00

The total fixed cost should equal $1000.

What is the total fixed cost?

The first step is to determine the average fixed cost. The average fixed cost can be determined by subtracting the average variable costs from average total costs.

$70 - $60 = $10

Total fixed cost is the product of average fixed cost and output

100 x $10 = $1000

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What is the total fixed cost?

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