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. If The Barber Shop produces more than 300 hair cuts, the average fixed costs are

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. If The Barber Shop produces more than 300 hair cuts, the average fixed costs are
A) < $10. 
B) $10. 
C) > $10. 
D) There is not enough information in the graph to answer this question.

Quizplus · Accepted Answer

Average fixed costs decrease as the quantity of output increases because the total fixed costs are spread over a larger number of units. Therefore, if The Barber Shop produces more than 300 haircuts, the average fixed cost per haircut would be less than $10.

Refer to the Information Provided in Figure 8