-In the figure above, when 40 units are produced the average fixed cost is
A) $8.
B) $4.
C) $12.
D) $20.

Question

-In the figure above, when 40 units are produced the average fixed cost is
A) $8. 
B) $4. 
C) $12. 
D) $20.

Quizplus · Accepted Answer

Average Fixed Cost (AFC) is calculated by dividing the total fixed costs by the quantity of output produced. Without the specific figure or total fixed costs mentioned, we can't directly calculate it. However, based on the information given that when 40 units are produced the AFC is one of the provided options, and assuming a typical scenario where fixed costs are spread out over units produced, reducing the AFC as production increases, the correct answer is chosen based on common outcomes of such scenarios. Without the specific figure or total fixed costs, this question cannot be directly answered; thus, the response is based on the assumption of a typical question format where one of the provided options would be correct based on standard economic principles.

-In the Figure Above, When 40 Units Are Produced the Average