-The above figure shows the costs at Barney's Bagel Bakery. At which of the following amounts of output is the AFC be the lowest?
A) at 2000 bagels
B) at 3000 bagels
C) at 3500 bagels
D) None of the above because the AFC is constant regardless of how many bagels are produced each day.

Question

-The above figure shows the costs at Barney's Bagel Bakery. At which of the following amounts of output is the AFC be the lowest?
A) at 2000 bagels 
B) at 3000 bagels 
C) at 3500 bagels 
D) None of the above because the AFC is constant regardless of how many bagels are produced each day.

Quizplus · Accepted Answer

AFC (Average Fixed Cost) decreases as output increases, so it is lowest at the highest output level, which is 3500 bagels.

-The Above Figure Shows the Costs at Barney's Bagel Bakery