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WAEC Economics 2018 Question 19

Question 19

Theory of Costs and Revenue

Use the table below to answer the question.
Quantity | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7
Total Cost | 20 | 25 | 28 | 30 | 38 | 55 | 92 | 135
The total fixed cost is

  1. A.$7.00
  2. B.$30.00
  3. C.$20.00
  4. D.$135.00
Show the answer and explanation

Answer: C ($20.00)

Explanation

Fixed cost is the total cost at zero output: $20.