Figure 11-3 Figure 11-3 shows the cost structure for a firm.
-Refer to Figure 11-3.If output is 100 units what is the fixed cost of production?

Question

Figure 11-3  Figure 11-3 shows the cost structure for a firm.
-Refer to Figure 11-3.If output is 100 units what is the fixed cost of production?

Quizplus · Accepted Answer

Fixed cost is the portion of the total cost that does not change regardless of the level of production. From the graph, when the level of output is zero, the total cost is $800, which is the fixed cost. Therefore, when the level of output is 100 units, the fixed cost of production is still $800.

Figure 11-3 Figure 11-3 Shows the Cost Structure for a Firm