For the cost function C(Q)= 200 + 3Q + 8Q² + 4Q³,what is the average fixed cost of producing six units of output? A) 18.31 B) 212.61 C) 42.12 D) 33.33

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Quizplus · Accepted Answer

The average fixed cost (AFC) is calculated by dividing the total fixed costs by the quantity of output produced. In the given cost function C(Q) = 200 + 3Q + 8Q + 4Q, the fixed cost is 200 (it does not depend on the quantity Q). To find the AFC for producing six units, divide the fixed cost by the quantity: AFC = 200 / 6 = 33.33.

For the Cost Function C(Q)= 200 + 3Q + 8Q2

For the Cost Function C(Q)= 200 + 3Q + 8Q²