If fixed costs are 100 and the variable cost per unit is 3, what is the total cost of producing 20 units?

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Prepare for the OnRamps Economics College Exam with detailed multiple-choice questions and explanations. Strengthen your understanding and boost your performance!

Multiple Choice

If fixed costs are 100 and the variable cost per unit is 3, what is the total cost of producing 20 units?

Explanation:
Total cost = fixed costs + (variable cost per unit × quantity). With fixed costs of 100 and variable cost per unit of 3 for 20 units, the variable portion is 3 × 20 = 60. Adding the fixed costs gives 100 + 60 = 160. So the total cost is 160. The other numbers come from miscounting either the fixed part, the variable part, or both.

Total cost = fixed costs + (variable cost per unit × quantity). With fixed costs of 100 and variable cost per unit of 3 for 20 units, the variable portion is 3 × 20 = 60. Adding the fixed costs gives 100 + 60 = 160. So the total cost is 160. The other numbers come from miscounting either the fixed part, the variable part, or both.

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