Question 7 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

Question

UpStudy AI · Accepted Answer

To determine the fixed cost at different quantities, we can use the formula for fixed cost:

$$ \text{Fixed Cost} = \text{Fixed Cost at Q=0} + \text{Variable Cost} \times \text{Quantity} $$

Given:
- Fixed cost at $$ Q=100 $$ is $$ \$130 $$
- Fixed cost at $$ Q=0 $$ is $$ \$0 $$

We can calculate the variable cost using the given information:

$$ \text{Variable Cost} = \frac{\text{Fixed Cost at Q=100} - \text{Fixed Cost at Q=0}}{\text{Quantity at Q=100}} $$

$$ \text{Variable Cost} = \frac{130 - 0}{100} = 1.3 $$

Now, we can calculate the fixed cost at $$ Q=200 $$ using the variable cost:

$$ \text{Fixed Cost at Q=200} = \text{Fixed Cost at Q=0} + \text{Variable Cost} \times \text{Quantity at Q=200} $$

$$ \text{Fixed Cost at Q=200} = 0 + 1.3 \times 200 = 260 $$

Therefore, the fixed cost at $$ Q=200 $$ is $$ \$260 $$.

It is possible to calculate the fixed costs at any other quantity using the variable cost and the fixed cost at $$ Q=0 $$.
The fixed cost at $$ Q=200 $$ is \$260.

Question 7 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

Upstudy AI Solution

Answer

Solution

Beyond the Answer

Related Questions

Latest Economics Questions