Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's total fixed costs are
A) $50.
B) $100.
C) $300.
D) indeterminate from this information.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's total fixed costs are
A) $50. 
B) $100. 
C) $300. 
D) indeterminate from this information.

Quizplus · Accepted Answer

Micro Oven's total fixed costs are $300 because fixed costs do not change with the level of production.

Refer to the Short-Run Information Provided in Figure 8