Suppose a firm is producing 100 units of output,incurring a total cost of $10 000 and total variable cost of $6000.It can be concluded that average fixed cost is
A)$100.
B)$4000.
C)$40.
D)$60.
E)$160.

Question

Quizplus · Accepted Answer

Total cost = Fixed cost + Variable cost
$10 000 = Fixed cost + $6 000
Fixed cost = $4 000
Average fixed cost = Fixed cost/Quantity
= $4 000/100
= $40

Suppose a Firm Is Producing 100 Units of Output,incurring a Total