Table 21.4 $\begin{array}{|c|r|}
\hline \text { Output (Units per Day) } & \text { Total Cost (Dollars per Day) } \
\hline 0 & 16 \
\hline 1 & 30 \
\hline 2 & 42 \
\hline 3 & 58 \
\hline 4 & 78 \
\hline
\end{array}$
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.

Question

Table 21.4 $\begin{array}{|c|r|}
\hline \text { Output (Units per Day) } & \text { Total Cost (Dollars per Day) } \
\hline 0 & 16 \
\hline 1 & 30 \
\hline 2 & 42 \
\hline 3 & 58 \
\hline 4 & 78 \
\hline
\end{array}$
 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

Average fixed costs (AFC) are calculated by dividing the total fixed costs by the quantity of output. The total fixed costs remain constant at $16 (as seen when output is 0). At 3 units of output, AFC = $16 / 3 = $5.33.

Table 214 At 3 Units of Output in Table 21