**10.** If the firm whose costs curves are graphed to the right produces 50 units of output its **Total Fixed Cost** will be:

The graph to the right doesn't show fixed cost explicitly, but we can still compute **Total Fixed Cost** from the available information. For any given level of output we know both **ATC** and **AVC**. Since the difference between total and variable cost is just fixed cost we know that:

**AFC = ATC - AVC**

At **50** units of output **ATC = 20** and **AVC = 18**, so **AFC = 2**. Thus

**Total Fixed Cost = 50 x 2 = 100**

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