Figure 7-7
-In Figure 7-7 at 100 units, AFC equals
A)10.
B)100.
C)180.
D)1,000.

Name: Figure 7-7 -In Figure 7-7 at 100 units, AFC equals A)10. B)100. C)180. D)1,000.
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Question

Figure 7-7 
-In Figure 7-7 at 100 units, AFC equals
A)10. 
B)100. 
C)180. 
D)1,000.

Quizplus · Accepted Answer

AFC, or Average Fixed Cost, is calculated by dividing the total fixed costs by the quantity of output produced. If at 100 units the AFC equals 10, it means the total fixed costs are $1,000 (since 10 * 100 = 1,000). This option correctly represents how AFC is determined.

Figure 7-7 -In Figure 7-7 at 100 Units, AFC Equals