Exhibit 8-5
-Refer to Exhibit 8-5. At an output level of L, average fixed cost is

Name: Exhibit 8-5 -Refer to Exhibit 8-5. At an output level of L, average fixed cost is
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Question

Exhibit 8-5 
-Refer to Exhibit 8-5. At an output level of L, average fixed cost is

Quizplus · Accepted Answer

Average fixed cost is equal to total fixed cost divided by output. At an output level of L, total fixed cost is equal to F1F1F1S1 and output is equal to F1F1F10. Therefore, average fixed cost is equal to F1F1F1S1/F1F1F10 = F1F1F1S1-F1F1F10.

Exhibit 8-5 -Refer to Exhibit 8-5. at an Output Level of L