If fixed cost at \( Q=100 \) is \( \$ 130 \), then fixed cost at \( Q=0 \) is \( \$ 0 \) fixed cost at \( Q=0 \) is less than \( \$ 130 \) fixed cost at \( Q=200 \) is \( \$ 260 \) fixed cost at \( Q=200 \) is \( \$ 130 \) it is impossible to calculate fixed costs at any other quantity
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Fixed costs are constant and do not change with the level of output. Therefore, even when \( Q=0 \), the fixed cost remains at \( \$ 130 \) as this is a cost incurred regardless of production levels. So, fixed cost at \( Q=0 \) is indeed \( \$ 130 \), not \( \$ 0 \) or less. When considering changes in output, remember that fixed costs will always be the same – they are not influenced by how much or how little you produce. So, at \( Q=200 \), fixed costs remain at \( \$ 130 \) too. Therefore, the total cost at \( Q=200 \) would just include any variable costs associated with that specific level of output on top of the fixed cost. Keep this in mind when analyzing costs; fixed costs are your steadfast allies in the financial game!
