TABLE 7-3

-Refer to Table 7-3. What is the level of the firm's total fixed cost (in thousands)?
A) $0
B) $5
C) $8
D) $25

Question

TABLE 7-3
 
-Refer to Table 7-3. What is the level of the firm's total fixed cost (in thousands)?
A) $0 
B) $5 
C) $8 
D) $25

Quizplus · Accepted Answer

Total Fixed Cost (TFC) remains constant regardless of the level of output. Since the Total Cost (TC) at 0 units of output is $5,000 (assuming "in thousands" means the table values are in thousands), and this cost exists even when no output is produced, it represents the firm's total fixed cost.

TABLE 7-3 -Refer to Table 7-3. What Is the Level of the the Level