The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are
A) $0.
B) $13,000.
C) $17,000.
D) indeterminate because the firm's output level is not known.

Question

Quizplus · Accepted Answer

Total fixed costs are calculated by subtracting total variable costs from total costs, which is $15,000 - $2,000 = $13,000.

The Farley Farm, a Dairy Company, Has Total Costs of $15,000