If a firm's output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00,then AFC would equal
A) $.80
B) $1.00
C) $80.00
D) $2.00
E) $8.00

Name: If a firm's output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00,then AFC would equal A) $.80 B) $1.00 C) $80.00 D) $2.00 E) $8.00
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Question

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is calculated by dividing the total fixed cost (TFC) by the quantity of output. Here, TFC = $8.00 and output = 10, so AFC = $8.00 / 10 = $0.80.

If a Firm's Output Equals 10, Product Price Equals $5