Assume that in the short run a firm is producing 200 units of output, has average total costs of $250, and has average variable costs of $150. The firm's total variable costs are.

A) $30,000.
B) $50,000.
C) $100.
D) $20,000.

Average Variable Costs

The cost per unit of producing each good or service, excluding any fixed costs.

Average Total Costs

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Total Variable Costs

The total of all costs that vary with the level of output, including expenses such as raw materials, labor, and utilities that increase as production expands.