Asked by
Christina Aills
on Dec 11, 2024
Verified
If fixed cost at quantity (Q) = 100 is $130, then
A) fixed cost at Q = 0 is $0.
B) fixed cost at Q = 0 is less than $130.
C) fixed cost at Q = 200 is $260.
D) fixed cost at Q = 200 is $130.
E) it is impossible to calculate fixed costs at any other quantity.
Fixed Cost
Costs that remain constant regardless of the level of production or sales, such as lease payments and salaries.
Quantity
The amount or number of a material or immaterial good considered as a unit or total.
- Differentiate among fixed, variable, and aggregate costs within a production framework.
Verified Answer
NP
Learning Objectives
- Differentiate among fixed, variable, and aggregate costs within a production framework.