Table 5.4
-Table 5.4 presents the cost schedule for David's Figs. If David produces zero figs, David's total costs are
A) $0.
B) $90.
C) $100.
D) $130.

Question

Table 5.4
-Table 5.4 presents the cost schedule for David's Figs. If David produces zero figs, David's total costs are
A) $0. 
B) $90. 
C) $100. 
D) $130.

Quizplus · Accepted Answer

The table shows that when David produces zero figs, his fixed costs are $90. However, in order to produce any figs, David incurs additional variable costs. Therefore, the total cost when producing zero figs would be the sum of the fixed costs and the variable costs, which is $90 + $10 = $100.

Table 5.4 -Table 5.4 Presents the Cost Schedule for David's Figs. If