Assume that in the short run a firm is producing 100 units of output,has average total costs of $200,and has average variable costs of $150.The firm's total fixed costs are:

A) $5,000.
B) $500.
C) $0.50.
D) $50.

Average Total Costs

The total cost of production divided by the number of units produced, reflecting the average cost per unit of output.

Average Variable Costs

A new definition for the cost incurred from variable resources divided by the total output, illustrating the expense associated with producing each additional unit.

Total Fixed Costs

The total amount of expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.