Figure 10.5

Figure 10.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 10.5.What is the amount of the firm's fixed cost of production?

Question

Figure 10.5
  
Figure 10.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 10.5.What is the amount of the firm's fixed cost of production?

Quizplus · Accepted Answer

Fixed cost is the cost that does not change with the level of output. In this case, the fixed cost is $5,400.

Figure 10.5 Figure 10.5 Shows Cost and Demand Curves Facing a Typical