Answer:
total fixed cost of producing 80 units of output is $200
Explanation:
Given data
Q = 2KL
capital = $25 per unit
short run = 8 units
price of labor = $5 per unit
to find out
total fixed cost
solution
to find total fixed cost
we will get by product of price of capital and fixed capital in short run
that is
total cost = 25 × 8
total cost =200
so the total fixed cost of producing 80 units of output is $200
