Exhibit 21-3

-Refer to Exhibit 21-3. The average fixed cost of producing 10 units of output is
A)$50.00.
B)$10.00.
C)$2.50.
D)$1.00.
E)$500.00.

Question

Exhibit 21-3
​
 
-Refer to Exhibit 21-3. The average fixed cost of producing 10 units of output is
A)$50.00. 
B)$10.00. 
C)$2.50. 
D)$1.00. 
E)$500.00.

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed cost by the quantity of output produced. From Exhibit 21-3, if the total fixed cost is not provided, it cannot be directly determined. However, given the options and the context that typically involves calculating AFC, if we assume a standard scenario where fixed costs are a given total amount (not dependent on the number of units produced), the correct answer would usually involve dividing the total fixed costs by the number of units. Without the specific exhibit details, a precise calculation cannot be made, but typically, AFC decreases as output increases because the fixed cost is spread over more units. The correct answer provided here, A, suggests a specific AFC value based on information that would have been in Exhibit 21-3, which is not directly visible in this interaction.

Exhibit 21-3 ​

Exhibit 21-3