Figure 7.7 Figure 7.7 shows the cost structure for a firm.
-Refer to Figure 7.7.If output is 100 units, fixed cost of production is
A)$8
B)$800
C)$1000
D)This cannot be determined from the diagram.

Question

Figure 7.7  Figure 7.7 shows the cost structure for a firm.
-Refer to Figure 7.7.If output is 100 units, fixed cost of production is
A)$8 
B)$800 
C)$1000 
D)This cannot be determined from the diagram.

Quizplus · Accepted Answer

The fixed cost line intersects the vertical axis at the point $800, indicating that the fixed cost of production is $800 for any level of output. Therefore, if output is 100 units, the fixed cost of production is still $800.

Figure 77 Figure 7