The table below shows the total cost of producing different units of a commodity. Table 7.2

- Refer to Table 7.2.The average fixed cost of the first unit of output is:
A)$46.
B)$98.
C)$100.
D)$50.
E)$140.

Question

The table below shows the total cost of producing different units of a commodity. Table 7.2

- Refer to Table 7.2.The average fixed cost of the first unit of output is:
A)$46. 
B)$98. 
C)$100. 
D)$50. 
E)$140.

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed cost (TFC) by the quantity of output. If the TFC is $100 and the output is 1 unit, then AFC = $100/1 = $100.

The Table Below Shows the Total Cost of Producing Different