The following figure represents the short-run total cost function for the Fidget Company,which produces widgets.The fixed costs are: A) FC = $100. B) FC = 10Q. C) FC = 5Q². D) FC = $500. E) not estimable from the information given.

Question

Quizplus · Accepted Answer

The horizontal distance between the y-axis and the total cost curve represents fixed costs. In this case, the distance is $100, so the fixed costs are $100.

The Following Figure Represents the Short-Run Total Cost Function for the Fidget