The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4
In Table 7.4, at 4 units of output,

Question

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4
 In Table 7.4, at 4 units of output,

Quizplus · Accepted Answer

At 4 units of output, the total cost is $65. Therefore:
- Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Quantity (Q) 
= $25 / 4 
= $6.25 
- Average Variable Cost (AVC) = Total Variable Cost (TVC) / Q 
= ($65 - $25) / 4 
= $10
Therefore, the correct answer is A: AFC = $6.25 and AVC = $10.

The Table Given Below Shows the Total Cost of Producing