Consider the following total cost schedule for a perfectly competitive firm producing ball- point pens. $$\begin{array}{l}
\begin{array} { | l | l | l | }
\hline \begin{array} { l }
\text { Output } \
\text { per period }
\end{array} & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \
\hline 0 & 0 & 5 \
\hline 10 & 2 & 5 \
\hline 20 & 3 & 5 \
\hline 30 & 6 & 5 \
\hline 40 & 10 & 5 \
\hline 50 & 15 & 5 \
\hline
\end{array}\
\text { TABLE 9- } 3
\end{array}$$
-Refer to Table 9- 3. If this firm were producing at an output level of 30 units, the AFC would be
And the AVC would be .

Question

Consider the following total cost schedule for a perfectly competitive firm producing ball- point pens. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Output } \
\text { per period }
\end{array} & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \
\hline 0 & 0 & 5 \
\hline 10 & 2 & 5 \
\hline 20 & 3 & 5 \
\hline 30 & 6 & 5 \
\hline 40 & 10 & 5 \
\hline 50 & 15 & 5 \
\hline
\end{array}\
\text { TABLE 9- } 3
\end{array}$$
-Refer to Table 9- 3. If this firm were producing at an output level of 30 units, the AFC would be
And the AVC would be .

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is calculated as TFC divided by output, which is $5/30 = $0.17. AVC (Average Variable Cost) is calculated as TVC divided by output, which is $6/30 = $0.20.

Consider the Following Total Cost Schedule for a Perfectly Competitive