The formula for total fixed cost is a tf c t c tvc b

The formula for total fixed cost is
A) TF C = T C + TVC . B) TF C = TV C ‐
C) TF C = TC / TVC . D) TF C = T C ‐ TVC
TC .
.
Total cost is calculated as
The Lawn Ranger, a landscaping company, has total costs of $5,000 and total variable costs of
$1,000. The Lawn Ranger s total fixed costs are ʹ
ʹ
A dairy company, Farley Farm, has total costs of $10,000 and total variable costs of $3,000.
Farley Farm s total fixed costs are ʹ
Amy spends $6,000 on remodeling a storefront that she then opens as a take‐out deli. After
opening her deli her business is terrible and she needs an additional $2,000 to keep the deli
open. Which of the following is TRUE?
A) The $6,000 Amy spent on remodeling represents a part of the total variable cost of her
business.
B) The $6,000 Amy spent on remodeling represents a sunk cost of her business.
C) The $2,000 Amy needs to keep the deli open represents her marginal costs of production.
D) The $2,000 Amy needs to keep the deli open represents her total fixed costs.

Dana spends $10,000 on remodeling a storefront that she then opens as a shoe store. Her
business has not been very successful, and she needs an additional $3,000 to keep the shoe
store open. Which of the following is TRUE?
The formula for average fixed costs is
.
Average fixed costs