At its current output level, Pretty Flowers Florist has average total costs equal to $10.40 and average variable costs equal to $6.20. What is Pretty Flowers Florist's average fixed cost at their current output level?

Question

Quizplus · Accepted Answer

Average fixed cost is calculated by subtracting average variable costs from average total costs. So, $10.40 - $6.20 = $4.20.

At Its Current Output Level, Pretty Flowers Florist Has Average