Suppose the total fixed cost of a firm is $500, the total variable cost is $200, and the output produced is 5 units. the average fixed cost of the firm is $100. multiple choice question.
Total fixed costs are the sum of all constant non-variable costs that a company has to pay. A company rents office space for $10,000 per month, leases machinery for $5,000 per month, and his monthly utility bills are $1,000. In this case, the company's total fixed costs are $16,000.
Subtract the variable cost multiplied by the number of units produced from the total cost of production. This will give you the total fixed cost.
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