The table below shows the total cost of producing different units of a commodity.Table 8.2

-From Table 8.2, 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 8.2
 
-From Table 8.2, 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 vary with the level of production. Looking at the table, we can see that at any level of production, the total cost is always at least $100. This means that the fixed cost, which is the amount of cost when no units are produced, is at least $100. Therefore, the correct answer is B, $100.

The Table Below Shows the Total Cost of Producing Different