Table 13-12
Betty's Bakery

-Refer to Table 13-12.What is the average fixed cost of producing 3 cakes at Betty's Bakery?
A) $1.67
B) $2.67
C) $5.33
D) $8.33

Name: Table 13-12 Betty's Bakery -Refer to Table 13-12.What is the average fixed cost of producing 3 cakes at Betty's Bakery? A) $1.67 B) $2.67 C) $5.33 D) $8.33
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Question

Table 13-12
Betty's Bakery
 
-Refer to Table 13-12.What is the average fixed cost of producing 3 cakes at Betty's Bakery?
A) $1.67 
B) $2.67 
C) $5.33 
D) $8.33

Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed cost (TFC) by the quantity of output. If the TFC is $25, then AFC for 3 cakes is $25/3 = $8.33.