Question
Asked Nov 5, 2019
(dollas
мс . F
40
E
ATC
30
AVC
22
в
20
ED0 350
Output (unit)
425 450 0
rri
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(dollas мс . F 40 E ATC 30 AVC 22 в 20 ED0 350 Output (unit) 425 450 0 rri

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If the firm produces 350 units, total fixed costs are:
a. $1,400
b. $7,700
c. $9,100
d. Can't tell; insufficient information
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If the firm produces 350 units, total fixed costs are: a. $1,400 b. $7,700 c. $9,100 d. Can't tell; insufficient information

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check_circleExpert Solution
Step 1

The total fixed cost is the cost that remain constant in total dollar amount irrespective tio the changes in the activity base such as units of production. Common example of fixed costs are factory overhead costs and straight-line depreciation.

Step 2

Here, we can calculate the total fixed cost if the firm produ...

TFC AFCXQ
=(ATC-AVC)xQ
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TFC AFCXQ =(ATC-AVC)xQ

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