The total fixed cost for this firm is $20 (option a).
How to explain
Fixed costs are expenses that remain constant regardless of the level of production. In the provided table, the fixed costs are explicitly stated as $20.
These costs do not fluctuate with the production output; hence, they are constant. Variable costs, on the other hand, change with the level of production.
In this case, the total cost comprises both fixed and variable costs, but specifically, the fixed cost component is explicitly identified as $20, making it the total fixed cost for the firm as outlined in the table.
The Complete Question
Referencing the provided table detailing the costs for a firm's operations:
Cost Type Amount ($)
Fixed Costs $20
Variable Costs $30
Total Costs $50
What is the total fixed cost for this firm?
a. $20
b. $30
c. $40
d. $50