Suppose that for 20 bicycles,the total fixed cost is $100 and total variable cost is $300.Then the average fixed cost and average variable cost are:
A)$5 and $10 respectively.
B)$5 and $15 respectively.
C)$10 and $15 respectively.
D)$15 and $10 respectively.
E)$10 and $5 respectively.

Question

Quizplus · Accepted Answer

The average fixed cost is calculated by dividing the total fixed cost by the number of bicycles: $100/20 = $5. The average variable cost is calculated by dividing the total variable cost by the number of bicycles: $300/20 = $15.

Suppose That for 20 Bicycles,the Total Fixed Cost Is $100