Figure 8-14
The following question(s)refer(s)to the below cost curves for one very small firm in a large market.

-Refer to Figure 8-14.If the firm produces 15 units of output,its average fixed cost is

Question

Figure 8-14
The following question(s)refer(s)to the below cost curves for one very small firm in a large market.
 
-Refer to Figure 8-14.If the firm produces 15 units of output,its average fixed cost is

Quizplus · Accepted Answer

To find the average fixed cost, we need to divide the total fixed cost (shown by the horizontal line labeled AFC) by the quantity of output (15 units). At 15 units of output, the total fixed cost is $60. Thus, AFC = $60/15 = $4. Therefore, the answer is choice A.

Figure 8-14 The Following Question(s)refer(s)to the Below Cost Curves for One Very