Figure $12-5$

Figure $12-5$ shows cost and demand curves facing a typical firm in a constant$-$cost$,$ perfectly competitive industry.

Refer to Figure $12-5.$ What is the amount of the firm's fixed cost of production?

$$5,400$

It cannot be determined.

$$8,100$

$$6,750$AtmAri

In a decision tree, the difference between a decision node and a terminal node is that

at a decision node, a decision must be made while a terminal node shows the payoff.

at a decision node all participants are free to make individual decisions but at a terminal node they must agree on a collective decision.

at a decision node a decision must be made, while at a terminal node the final decision must be made.

at a decision node all participants make the same decision, while at a terminal node different players may make different decisions.