-Using the data in the above table, the average fixed cost of producing 16 units is
A) $1.11 a unit.
B) $1.25 a unit.
C) $1.54 a unit.
D) $2.22 a unit.

Question

-Using the data in the above table, the average fixed cost of producing 16 units is
A) $1.11 a unit. 
B) $1.25 a unit. 
C) $1.54 a unit. 
D) $2.22 a unit.

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing total fixed costs (TFC) by the quantity of output produced. Without the table, we assume TFC is constant. If TFC is $20, then AFC for 16 units is $20/16 = $1.25.

-Using the Data in the Above Table, the Average Fixed