Use the following to answer question:
-(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing 4 purses is:
A)$12.50.
B)$47.50.
C)$50.00.
D)$82.50.

Question

Use the following to answer question: 
-(Table: Cost Data)Use Table: Cost Data.The average fixed cost of producing 4 purses is:
A)$12.50. 
B)$47.50. 
C)$50.00. 
D)$82.50.

Quizplus · Accepted Answer

Average Fixed Cost (AFC) is calculated by dividing the total fixed costs by the quantity of output produced. For 4 purses, if the total fixed cost is given or can be inferred from the context provided (which isn't directly provided here), the AFC would be the total fixed cost divided by 4. Without specific cost data, we can infer the correct answer based on typical understanding of fixed costs being spread out over units produced, leading to a decrease in AFC as quantity increases. $12.50 as an AFC for 4 purses suggests a total fixed cost of $50 ($12.50 * 4), which aligns with common examples where fixed costs are distributed across units produced.

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