Refer to data below. The average fixed cost of producing four units is ?
$\begin{array}{|c|c|c|c|c|}
\hline \text { Quantity of } & \text { Fixed Costs } & \text { Variable} & \text { Total Costs } & \text {Marginal Costs } \
\text {Output } && \text {Costs } \
\hline 0 & € 10 & € 0 \
\hline 1 & 10 & 5 \
\hline 2 & 10 & 11 \
\hline 3 & 10 & 18 \
\hline 4 & 10 & 26 \
\hline 5 & 10 & 36 \
\hline
\end{array}$

Question

Refer to data below. The average fixed cost of producing four units is ?
$\begin{array}{|c|c|c|c|c|}
\hline \text { Quantity of } & \text { Fixed Costs    } & \text {  Variable} & \text { Total Costs } & \text {Marginal Costs  } \
 \text {Output  } && \text {Costs  } \
\hline 0 & € 10 & € 0 \
\hline 1 & 10 & 5 \
\hline 2 & 10 & 11 \
\hline 3 & 10 & 18 \
\hline 4 & 10 & 26 \
\hline 5 & 10 & 36 \
\hline
\end{array}$

Quizplus · Accepted Answer

The average fixed cost is calculated by dividing the total fixed costs by the quantity of output. For four units, the fixed cost is €10, so the average fixed cost is €10/4 = €2.50.

Refer to Data Below A) €250 B) €5

Refer to Data Below A) €250
B) €5