Total Fixed Cost = 20 x 5 = 100
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4. If the firm whose costs curves are graphed to the right produces 20 units of output its Total Fixed Cost will be:
Actually no computation at all is needed for this question. Fixed Cost doesn't change with output so there is no need to compute anything since we learned in the last question that, for this firm, Fixed Cost = 100. If you wish to check the answer anyway on the graph to the right we see that at 20 units of output ATC = 15 and AVC = 10, so AFC = 5. Thus
Total Fixed Cost = 20 x 5 = 100
