passwella.
Menu

WAEC Economics 2021 Question 19

Question 19

Theory of Costs and Revenue

A firm incurred the following costs in production. Use the information in the table to answer the question.
Output (bags of rice) | 0 | 10 | 20 | 30 | 40 | 50 | 60
Total Cost ($) | 100 | 200 | 300 | 380 | 440 | 520 | 600
The fixed cost of production is

  1. A.$100.
  2. B.$200.
  3. C.$300.
  4. D.$600
Show the answer and explanation

Answer: A ($100.)

Explanation

Fixed cost is the cost at zero output: $100.