Use the following to answer question

-If the firm produces 5 units,average fixed costs equals
A)$5
B)$10
C)$15
D)$20

Question

Use the following to answer question
 
-​If the firm produces 5 units,average fixed costs equals
A)​$5 
B)$10 
C)$15 
D)​$20

Quizplus · Accepted Answer

Average fixed costs decrease as output increases because the total fixed costs are spread over a larger number of units. If the firm's total fixed costs are $50 (as implied by the choices given for different levels of output), producing 5 units would mean the average fixed cost per unit is $50 / 5 = $10.

Use the Following to Answer Question