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Question

Ib Prod × Premier Membership U if a firm's use of labor c if a firm's use of labor ucture.com/courses/1138695/quizzes/1913851/take or Question n U.B4 p When a firm produces zero pizzas per hour its total variable cost (TVC) is $0 and its Total Cost (TC) is $20. When it produces 10 pizzas per hour its TVC is $50 and TC is $70. When it produces 20 pizzas per hour its TVC is $80 and its TC is $100. When it produces 30 pizzas per hour its TVC is $130 and its TC is $150. When it produces 40 pizzas per hour its TVC is $230 and its TC is $250. The pizzeria's total FIXED COST is equal to: O $70 O $20 $30 Question 12 0.84 pts

Explanation / Answer

Right answer is : $ 20

Fixed cost does not change with change in output. Producer has to bear fixed cost even when output is zero. Total variable cost is zero when output is zero. thus, total cost is $ 20 when firm produces zero output. Fixed is $ 20

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