Use the following to answer questions below :
-Refer to the total cost graph. What is average fixed cost equal to when Q = 5?
A) 2
B) 10
C) 11
D) 55

Question

Use the following to answer questions below : 
-Refer to the total cost graph. What is average fixed cost equal to when Q = 5?
A) 2 
B) 10 
C) 11 
D) 55

Quizplus · Accepted Answer

Average Fixed Cost (AFC) is calculated by dividing total fixed costs by the quantity of output (Q). If the total fixed cost is constant and does not change with the level of output, and given that Q = 5, if the AFC is 2, it means the total fixed costs are 10 (since 2 * 5 = 10). This implies that regardless of the output level, the fixed cost remains the same, and the AFC decreases as output increases.

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