-The table above gives the cost of producing T-shirts. When 5 T-shirts are produced, the average fixed cost is ________ and the average variable cost is ________.
A) $4; $10
B) $10; $6
C) $5; $3
D) $4; $6

Question

-The table above gives the cost of producing T-shirts. When 5 T-shirts are produced, the average fixed cost is ________ and the average variable cost is ________.
A) $4; $10 
B) $10; $6 
C) $5; $3 
D) $4; $6

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed cost by the number of units produced. If the total fixed cost is $20 and 5 T-shirts are produced, AFC = $20/5 = $4. The average variable cost (AVC) is calculated by dividing the total variable cost by the number of units produced. If the total variable cost is $30 and 5 T-shirts are produced, AVC = $30/5 = $6.

-The Table Above Gives the Cost of Producing T-Shirts