TABLE 7-5

-Refer to Table 7-5. How much are average fixed costs at four units of output?
A) $10
B) $20
C) $30
D) $40

Question

TABLE 7-5
 
-Refer to Table 7-5. How much are average fixed costs at four units of output?
A) $10 
B) $20 
C) $30 
D) $40

Quizplus · Accepted Answer

Average fixed costs decrease as output increases because the total fixed costs are spread over a larger number of units. Without the specific numbers from Table 7-5, we can't calculate the exact amount, but the concept remains that with more units produced, the average fixed cost per unit decreases.

TABLE 7-5 -Refer to Table 7-5. How Much Are Average Fixed Costs