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WAEC Economics 2018 Objective — Question 19

Question 19 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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Use the table below to answer questions 19 and 20 (Quantity: 0,1,2,3,4,5,6,7; Total Cost: 20,25,28,30,38,55,92,135). The total fixed cost is

  • A. $7.00
  • B. $30.00
  • C. $20.00Correct
  • D. $135.00

Explanation

Fixed cost is the cost incurred at zero output. From the table, when quantity=0, total cost = $20.00, which is the fixed cost.

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