Use the following to answer question:
Figure 7.8
-(Figure 7.8) The average fixed cost at 70 units of output is _____, and the firm's fixed cost of production is _____.

Question

Use the following to answer question:
Figure 7.8 
-(Figure 7.8) The average fixed cost at 70 units of output is _____, and the firm's fixed cost of production is _____.

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed cost by the number of units produced. If the AFC at 70 units is $7, then the total fixed cost is $7 * 70 = $490.

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