The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
TABLE 7-4
-Refer to Table 7-4.The total fixed cost of producing 305 units of output is
A)$100.
B)$125.
C)$112.50.
D)$225
E)$305.

Question

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
  TABLE 7-4
-Refer to Table 7-4.The total fixed cost of producing 305 units of output is
A)$100. 
B)$125. 
C)$112.50. 
D)$225 
E)$305.

Quizplus · Accepted Answer

The total fixed cost is constant and does not change with the level of output. It is given as $100 in the table.

The Following Data Show the Total Output for a Firm