At 3 units of output in Table 21.4, average fixed costs are
A) $16.00.
B) $19.50.
C) $5.33.
D) $15.50.

Name: At 3 units of output in Table 21.4, average fixed costs are A) $16.00. B) $19.50. C) $5.33. D) $15.50.
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Question

At 3 units of output in Table 21.4, average fixed costs are
A) $16.00. 
B) $19.50. 
C) $5.33. 
D) $15.50.

Quizplus · Accepted Answer

To calculate average fixed cost, we divide the total fixed cost by the quantity produced. At 3 units of output, the total fixed cost is $16. Therefore, average fixed cost is $16/3 = $5.33.

At 3 Units of Output in Table 21