Question

Assume a business has the following information:

« Q=719
« TC = $18,301
« AVC = $6
What is the FC?

Answer 1

The answer is 13987

The total variable cost for the production of 719 quantity would be 4314.

That is (719*6).

When the total variable cost is reduced from total cost , we get the fixed cost.

Fixed cost=Total cost- variable cost

FC= 18301-4314=13987