Use the following to answer questions:
-(Table: Cost Data) Look at the table Cost Data. The average fixed cost of producing 4 purses is:
A) $12.50.
B) $47.50.
C) $50.00.
D) $82.50.

Question

Use the following to answer questions: 
-(Table: Cost Data) Look at the table Cost Data. The average fixed cost of producing 4 purses is:
A) $12.50. 
B) $47.50. 
C) $50.00. 
D) $82.50.

Quizplus · Accepted Answer

Average fixed cost is calculated by dividing total fixed cost by the quantity of output. If the total fixed cost is $50, then for 4 purses, the average fixed cost is $50/4 = $12.50.

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