Exhibit 7-13 Cost curves
-In Exhibit 7-13, AFC is shown by the graph labeled:

Name: Exhibit 7-13 Cost curves -In Exhibit 7-13, AFC is shown by the graph labeled:
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Question

Exhibit 7-13 Cost curves 
-In Exhibit 7-13, AFC is shown by the graph labeled:

Quizplus · Accepted Answer

AFC is shown by the graph labeled I. AFC is the average fixed cost, which is the total fixed cost divided by the quantity of output. In Exhibit 7-13, the graph labeled I shows the total fixed cost, which is $100. The quantity of output is 10 units. Therefore, the average fixed cost is $100 / 10 = $10.

Exhibit 7-13 Cost Curves