The table below shows the total cost of producing different units of a commodity. Table 7.2

-From Table 7.2,derive the value of total fixed costs.
A)$10
B)$100
C)$98
D)$50
E)$60

Question

The table below shows the total cost of producing different units of a commodity. Table 7.2
 
-From Table 7.2,derive the value of total fixed costs.
A)$10 
B)$100 
C)$98 
D)$50 
E)$60

Quizplus · Accepted Answer

Total fixed cost is the cost that does not change with the change in the level of output. Looking at the table, we see that the cost for producing 0 units of the commodity is $100, which indicates that it is the fixed cost. Therefore, the best choice is B - $100.

The Table Below Shows the Total Cost of Producing Different