A business produces 10 pairs of eyeglasses.It incurs $35 in average total cost and $5 in average fixed cost.The average variable cost of producing 10 pairs of eyeglasses is:

A) $30.
B) $35.
C) $50.
D) $300.

Average Total Cost

Average total cost is the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicative of the cost per unit at different levels of output.

Average Variable Cost

The total variable cost per unit of output, found by dividing total variable costs by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance premiums.