Tom’s tent company has total fixed costs of $300,000 per year. the firm's average variable cost is $80 for 10,000 tents. at that level of output, the firm's average total costs equal a. $80 b. $90 c. $100 d. $110

The firm average total cost is $110

correct option is  d. $110

Explanation:

given data

total fixed costs = $300,000 per year

average variable cost = $80

tents = 10,000

to find out

we know that average total costs is sum of average fixed cost and average variable cost    .........................1

here

Average fixed cost = total fixed cost ÷  number of unit output

Average fixed cost =

Average fixed cost = $30

so

average total costs = Average fixed cost  + average variable cost

average total costs = $30 + $80

average total costs = $110

correct option is  d. $110

answer/// real gdp decreases to y3 and the price level falls to p3;