For Firm A,when four units of output are produced,the total cost is $175 and the average variable cost is $33.75.What would the average fixed cost be if ten units were produced?

Question

Quizplus · Accepted Answer

To find the average fixed cost (AFC) when ten units are produced, first calculate the total variable cost (TVC) for four units: TVC = AVC * Quantity = $33.75 * 4 = $135. Then, find the total fixed cost (TFC) for four units: TFC = Total Cost - TVC = $175 - $135 = $40. The AFC when ten units are produced is TFC / 10 = $40 / 10 = $4.

For Firm A,when Four Units of Output Are Produced,the Total