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Given the table below. What is the Total Fixed Cost when six workers are being used?

Question:

Given the table below.

Acres of land Workers TP MP TFC TVC TC MC AFC AVC ATC
30 0 0 0 500 0 500 NA
30 1 50 50 500 100 600 2 10 2 12
30 2 125 62.5 500 200 700 1.33 4 1.6 5.6
30 3 225 75 500 300 800 1 2.22 1.33 3.56
30 4 315 78.75 500 400 900 1.11 1.59 1.27 2.86
30 5 385 77 500 500 1000 1.43 1.30 1.30 2.60
30 6 445 74.167 500 600 1100 1.67 1.12 1.35 2.47
30 7 490 70 500 700 1200 2.22 1.02 1.43 2.45
30 8 520 65 500 800 1300 3.33 0.96 1.54 2.5
30 9 540 60 500 900 1400 5 0.93 1.67 2.59
30 10 550 55 500 1000 1500 10 0.91 1.82 2.73

What is the Total Fixed Cost when six workers are being used?

Production Acronyms:

To understand a production table in economics you need to understand a few acronyms. One thing you should know is that is something starts with M it usually means marginal and when something starts with A it means average.

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Answer: 500

Total fixed cost is the same across all levels of output. You will pay your fixed costs no matter what as that is what the name suggests....

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Fixed Costs: Definition, Formula & Examples

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Chapter 3 / Lesson 14
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What is a fixed cost? Learn the fixed cost definition and how to calculate it using the fixed cost formula. Compare fixed vs. variable costs and see fixed costs examples in business.


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