Table 13-3
Consider the following firm which makes high-performance racing bicycles.All costs are given in dollars.Output is shown on a monthly basis.The firm's fixed costs include a rent of $800 and a lease cost of $400 per month.
-Refer to Table 13-3.What is the average fixed cost for the month if 10 bicycles are produced?
A)$120
B)$284.40
C)$404.40
D)$1200

Question

Table 13-3
Consider the following firm which makes high-performance racing bicycles.All costs are given in dollars.Output is shown on a monthly basis.The firm's fixed costs include a rent of $800 and a lease cost of $400 per month. 
-Refer to Table 13-3.What is the average fixed cost for the month if 10 bicycles are produced?
A)$120 
B)$284.40 
C)$404.40 
D)$1200

Quizplus · Accepted Answer

The fixed cost for the month is the sum of the rent and lease cost, which is $800 + $400 = $1200. The average fixed cost is calculated by dividing the total fixed cost by the number of bicycles produced. So, the average fixed cost for the month if 10 bicycles are produced is $1200/10 = $120. Therefore, the best choice is A.

Table 13-3 Consider the Following Firm Which Makes High-Performance Racing Bicycles.All Costs