Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

A firm sells 10 000 units each month at a price of $10 per unit. The firm's total fixed cost is $40 000 per month. The firm earns only normal profit. What is the average variable cost at this level of output?

  • A$2.00
  • B$4.00
  • C$6.00
  • D$8.00

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