refer to the above short run date.total fixed cost for this firm is refer to the
ID: 1111117 • Letter: R
Question
refer to the above short run date.total fixed cost for this firm is refer to the above short run date.total fixed cost for this firm is refer to the above short run date.total fixed cost for this firm is Output 11. Refer to the above diagram, which pertains to a purely competitive firm. Curve A repe A. total revenue and marginal revenue. B. marginal revenue only. C. total revenue and average revenue. D. total revenue only. Total Cost Total $1,400 Revenue 1,200 1,000 800- 600 400+ 200 0 100 320 440 Output Refer to the above short-run data. Total fixed cost for this firm is: A. about $67 B. $300. C. $200. D. $100 12.Explanation / Answer
12. Total fixed cost for this firm is $200 i.e. option C. Because fixed cost is something the firm incurs even if it does not produce anything like rent etc. Note that when the firm produces 0 output, the intercept of the total cost graph signifies the fixed cost which is $200. That means this firm has to pay $200 fixed cost even it does not produces anything.
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