-By filling in the blanks in Exhibit H-5 (on the following page), the AFC of 4 pizzas is shown to be equal to
A) $10.00
B) $9.50
C) $19.50
D) $40.00
E) $78.00

Question

-By filling in the blanks in Exhibit H-5 (on the following page), the AFC of 4 pizzas is shown to be equal to
A) $10.00 
B) $9.50 
C) $19.50 
D) $40.00 
E) $78.00

Quizplus · Accepted Answer

AFC, or Average Fixed Cost, is calculated by dividing the total fixed costs by the quantity of output. If the AFC of 4 pizzas is $10.00, it means that the total fixed costs divided by 4 equals $10.00, indicating that the total fixed costs are $40.00 (since $10.00 * 4 = $40.00). This is a basic calculation used in economics to understand how costs per unit change with changes in output level.

-By Filling in the Blanks in Exhibit H-5 (On the Following