In the model described in Q2, what is the best interpretation of the coefficient 100?

Q: In the model described in Q2, what is the best interpretation of the coefficient 100?

or

Q: Which interpretation of the coefficient 100 in the model presented in Q2 is the most accurate?

• The variable costs are 100 USD
• The elasticity of cost respect to quantity is 100
• Fixed costs are 100,000 USD
• Fixed costs are 100 USD

Explanation: The coefficient 100 represents the fixed costs when the quantity produced ($q$) is zero. Therefore, the fixed costs in actual dollar amounts are $100\times 1,000=100,000$ USD.