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-Refer to the Data Above

Question 7

Multiple Choice

 Quantity  of Output  Fixed Costs  Variable  Costs  Total Costs  Marginal Costs 0 R10  R0 110521011310184102651036\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { of Output }\end{array} & \text { Fixed Costs } & \begin{array} { c } \text { Variable } \\\text { Costs }\end{array} & \text { Total Costs } & \text { Marginal Costs } \\\hline 0 & \text { R10 } & \text { R0 } & & \\\hline 1 & 10 & 5 & & \\\hline 2 & 10 & 11 & & \\\hline 3 & 10 & 18 & & \\\hline 4 & 10 & 26 & & \\\hline 5 & 10 & 36 & & \\\hline\end{array}
-Refer to the data above. The average fixed cost of producing four units is:


A) R2.50
B) R5
C) R9
D) R26
E) R40

Correct Answer:

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