Answered

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Use the following table to answer the next question.

[tex]\[
\begin{tabular}{|c|c|}
\hline
Output & Total Cost \\
\hline
0 & \$10 \\
\hline
1 & \$20 \\
\hline
2 & \$28 \\
\hline
3 & \$38 \\
\hline
4 & \$53 \\
\hline
5 & \$73 \\
\hline
6 & \$98 \\
\hline
\end{tabular}
\][/tex]

The total fixed cost of production is:

Sagot :

GinnyAnswer
To determine the total fixed cost of production, we need to identify the cost that does not change with the level of output. Fixed costs are the costs that remain constant regardless of the quantity of output produced.

1. Start by identifying the total cost for a production level close to zero. In this table, the lowest output provided is 1.

2. At an output level of 1, the total cost is given as \[tex]$20. Since fixed costs do not vary with the output level, the total fixed cost of production is the total cost incurred when the output is at its lowest. Thus, the total fixed cost is \$[/tex]20.
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