Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Total } \
\text { Product }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { pizzas } & \$ 0 & \$ 20 \
10 & 50 & 70 \
20 & 80 & 100 \
30 & 130 & 150 \
40 & 230 & 250 \
\hline
\end{array}$$
-In Exhibit 7-11, the pizzeria's fixed cost is equal to:

Question

Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Total } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Variable Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { pizzas } & \$ 0 & \$ 20 \
10 & 50 & 70 \
20 & 80 & 100 \
30 & 130 & 150 \
40 & 230 & 250 \
\hline
\end{array}$$
-In Exhibit 7-11, the pizzeria's fixed cost is equal to:

Quizplus · Accepted Answer

Fixed cost is the cost that does not change with the level of output. In this case, the fixed cost is $20, which is the cost of the pizzeria when it produces 0 pizzas.

Exhibit 7-11 Short-Run Cost Curves Schedule for Pizzeria's Hourly Production