If AFC is $8 at a quantity of output of 1,000 units, and ATC is $12 at the same level of output, it follows that
A)marginal cost is $10.
B)AVC is $4,000.
C)total cost is $4,000.
D)marginal cost is $1,000.
E)AVC is $4.

Question

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is given as $8 at a quantity of 1,000 units, and ATC (Average Total Cost) is $12 at the same level of output. The difference between ATC and AFC gives us AVC (Average Variable Cost), which is $12 - $8 = $4. The other options cannot be directly inferred from the given information.

If AFC Is $8 at a Quantity of Output of 1,000