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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 $.50. The firm's total costs:

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Answer:

$1250

Explanation:

Total cost = total fixed cost + total variable cost

fixed cost is cost that doesn't vary with output

Variable cost is cost that varies with output

total fixed cost = quantity x average fixed cost

total variable cost = quantity x average variable cost

($2 + $0.50) x 500 = $1250

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