Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.
A)$100; $100
B)$10; $135
C)$40; $100
D)$140; $140

Question

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At seven units of output, average fixed cost is approximately ________, and average variable cost is approximately _.
A)$100; $100 
B)$10; $135 
C)$40; $100 
D)$140; $140

Quizplus · Accepted Answer

At seven units of output, average fixed cost is approximately $40 (the point where the AFC curve intersects the y-axis). Average variable cost is approximately $100 (the point where the AVC curve intersects the total cost curve). Therefore, the correct answer is C.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the Figure