Suppose a firm is producing 100 units of output,incurring a total cost of $10 000 and total variable cost of $6000.It can be concluded that average fixed cost is
A)$40.
B)$60.
C)$100.
D)$160.
E)$4000.

Question

Quizplus · Accepted Answer

Average fixed cost is calculated by subtracting total variable cost from total cost to get total fixed cost, then dividing by the quantity of output. Here, ($10,000 - $6,000) / 100 = $40.

Suppose a Firm Is Producing 100 Units of Output,incurring a Total