Table 15-21
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.
-Refer to Table 15-21. What are Tommy's Ties Company's fixed costs?
A)$100
B)$150
C)$354
D)$654

Question

Table 15-21
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination. 
-Refer to Table 15-21. What are Tommy's Ties Company's fixed costs?
A)$100 
B)$150 
C)$354 
D)$654

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output. In the context of the table, $100 is the fixed cost as it remains constant regardless of the production level.

Table 15-21 Tommy's Tie Company, a Monopolist, Has the Following Cost and Cost