In the short run the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm’s total costs:

A.  are $2.50.
B.  are $1,100.
C.  are $750.
D.   are $1,250.

 

ANSWER:

D.   are $1,250.