A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm's average fixed cost?
A) $12
B) $4
C) $20
D) $28

Name: A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm's average fixed cost? A) $12 B) $4 C) $20 D) $28
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Question

Quizplus · Accepted Answer

The total variable cost is 50 units * $8 = $400. The total fixed cost is $1,000 - $400 = $600. The average fixed cost is $600 / 50 units = $12.

A Firm Is Producing 50 Units of Output at a Total