Is a $500 AC repair quote fair?

The short answer
Often reasonable — depends on the part.
The full picture

$500 is a normal band for common repairs: capacitors and contactors run $150–$400, blower motors $400–$800, refrigerant leaks $400–$1,500+. Ask exactly which part failed and what the part vs labor split is.

What drives the price

Red flags in a quote

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Typical US ranges; your market varies. Always get 2–3 competing quotes.