Exhibit 6-11 Short-run cost schedule for pizzeria's hourly production $$\begin{array} { | c | r | }
\hline \begin{array} { c }
\text { Total } \
\text { Product }
\end{array} & \begin{array} { r }
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { pizzas } & \$ 20 \
10 & 70 \
20 & 100 \
30 & 150 \
40 & 250 \
\hline
\end{array}$$ In Exhibit 6-11, the pizzeria's fixed cost is equal to:

Question

Exhibit 6-11 Short-run cost schedule for pizzeria's hourly production $$\begin{array} { | c | r | } 
\hline \begin{array} { c } 
\text { Total } \
\text { Product }
\end{array} & \begin{array} { r } 
\text { Total } \
\text { Cost }
\end{array} \
\hline 0 \text { pizzas } & \$ 20 \
10 & 70 \
20 & 100 \
30 & 150 \
40 & 250 \
\hline
\end{array}$$ In Exhibit 6-11, the pizzeria's fixed cost is equal to:

Quizplus · Accepted Answer

Fixed costs are the costs that do not change with the level of output. In this case, when 0 pizzas are produced, the total cost is $20, indicating that the fixed cost is $20.

Exhibit 6-11 Short-Run Cost Schedule for Pizzeria's Hourly Production In Exhibit 6-11, the Pizzeria's Fixed Cost Is Equal To