The table below shows the total cost of producing different units of a commodity. Table 21.2
From Table 21.2, derive the value of total fixed costs.

Question

The table below shows the total cost of producing different units of a commodity. Table 21.2
 From Table 21.2, derive the value of total fixed costs.

Quizplus · Accepted Answer

Total fixed cost is the cost that remains the same regardless of the level of production. In the given table, the cost of producing 0 units (which means no production) is $100. This cost remains constant and does not vary with the level of production. Therefore, the value of total fixed cost is $100, which is option B.

The Table Below Shows the Total Cost of Producing Different