A firm has a fixed cost of $1,000, a total cost of $1,050 when one unit of output is produced, and a total variable cost of $80 when two units of output are produced.
-This firm:

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output, and the firm's total cost when output is zero would be its fixed costs. Since the firm has a fixed cost of $1,000, its total cost when output is zero would indeed be $1,000.

A Firm Has a Fixed Cost of $1,000, a Total