What is the total fixed cost in Figure 21.2?
A)$80.
B)$10,000.
C)$9,600.
D)$29,600.

Question

What is the total fixed cost in Figure 21.2?
A)$80. 
B)$10,000. 
C)$9,600. 
D)$29,600.

Quizplus · Accepted Answer

In Figure 21.2, the total fixed cost is the vertical distance between the y-axis and the point where the total cost curve intersects the y-axis. This point is at $9,600, which is the total fixed cost. Therefore, the answer is C. Option A is incorrect because it represents the total variable cost at zero output; Option B is incorrect because it is the sum of total fixed cost and total variable cost at the zero output; Option D is incorrect because it represents the total cost at maximum output.

What Is the Total Fixed Cost in Figure 21