Figure 6-7 Figure 6-7 shows the cost structure for a firm.
-Refer to Figure 6-7.If output is 100 units,what is the fixed cost of production?

Question

Figure 6-7  Figure 6-7 shows the cost structure for a firm.
-Refer to Figure 6-7.If output is 100 units,what is the fixed cost of production?

Quizplus · Accepted Answer

According to the graph, at an output of 100 units, the total cost of production is $1800, and the variable cost is $1000. To find the fixed cost, we can use the equation TC = FC + VC, where TC is total cost, FC is fixed cost, and VC is variable cost. Thus, $1800 = FC + $1000. Therefore, the fixed cost is $800.

Figure 6-7 Figure 6-7 Shows the Cost Structure for a Firm