Use the following to answer question(s): Short-Run Costs

-(Exhibit: Short-Run Costs) At 7 units of output, average fixed cost is approximately _______ , and average variable cost is approximately _______ .
A) $100; $100
B) $10; $135
C) $40; $ 100
D) $140; $140

Question

Use the following to answer question(s): Short-Run Costs
 
-(Exhibit: Short-Run Costs) At 7 units of output, average fixed cost is approximately _______ , and average variable cost is approximately _______ .
A) $100; $100 
B) $10; $135 
C) $40; $ 100 
D) $140; $140

Quizplus · Accepted Answer

Average fixed cost is calculated by dividing total fixed cost by the quantity of output, and average variable cost is calculated by dividing total variable cost by the quantity of output. Based on the given options, $40 for average fixed cost and $100 for average variable cost are the closest approximations for 7 units of output.

Use the Following to Answer Question(s): Short-Run Costs