When Acme Dynamite Produces 250 Units of Output, Its Variable

Multiple Choice

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25.When Acme Dynamite produces 250 units of output, its average variable cost is ________ and its average total cost is ________.

A) $8; $2
B) $10; $10
C) $10; $2
D) $8; $10