2. Remember Davey from the previous question? As before he produces 100 glasses of lemonade with average total cost of 50 cents per glass and average variable cost of 40 cents per glass. Suppose he decides to increase his production to 120 glasses of lemonade for today, what is his total fixed cost now?

Remember that fixed costs are costs that don't change when output changes in the short run. If Davey decides to increase his output his fixed costs won't change. If they did they wouldn't be fixed so his total fixed cost is still $10.