Refer to the information provided in Figure 8.2 below to answer the question(s) that follow. Figure 8.2
-Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 haircuts, the average fixed costs are
A) $0.20.
B) $5.
C) $10.
D) $100.

Question

Refer to the information provided in Figure 8.2 below to answer the question(s) that follow.  Figure 8.2
-Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 haircuts, the average fixed costs are
A) $0.20. 
B) $5. 
C) $10. 
D) $100.

Quizplus · Accepted Answer

Average fixed costs are calculated by dividing total fixed costs by the quantity of output. Here, $3,000 divided by 300 haircuts equals $10 per haircut.

Refer to the Information Provided in Figure 8