Table 8.1 Table 8.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases.Assume that output can only be increased in batches of 100 units.
-Refer to Table 8.1.The fixed cost of production is
A)$0
B)$500
C)$1000
D)It cannot be determined.

Question

Table 8.1  Table 8.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases.Assume that output can only be increased in batches of 100 units.
-Refer to Table 8.1.The fixed cost of production is
A)$0 
B)$500 
C)$1000 
D)It cannot be determined.

Quizplus · Accepted Answer

Fixed cost is constant regardless of the level of output, which is $1000 in this case because this is the only nonzero value of fixed cost in the table.

Table 81 Table 8