When output is 100 units, the firm's total fixed cost is $500. What will this firm's total fixed cost be if output doubles to 200 units?
A) $1,000
B) $500
C) $250
D) Can't tell from the information provided

Question

Quizplus · Accepted Answer

Total fixed cost does not change with changes in output. The fixed cost remains the same whether the output is 100 units or 200 units. Therefore, the total fixed cost will still be $500.

When Output Is 100 Units, the Firm's Total Fixed Cost