If the average variable cost of producing 5 costumes in kira’s costume shop is $50, and the fixed cost of the shop is $100. what is the total cost for 5 costumes?
The given average variable cost = $50 Total variable cost = Average variable cost * Number of unit = $50 * 5 = $250 Fixed cost = $100 Total cost [TC] = Total fixed cost + Total variable cost TC = $100 + $ 250 = $350. The total cost for 5 costumes = $350.
