Table 13-3
Consider the following firm which makes high-performance racing bicycles. All costs are given in dollars. Output is shown on a monthly basis. The firm's fixed costs include a rent of $800 and a lease cost of $400 per month.

-Refer to Table 13-3. What is the average fixed cost for the month if ten bicycles are produced?

Question

Table 13-3
Consider the following firm which makes high-performance racing bicycles. All costs are given in dollars. Output is shown on a monthly basis. The firm's fixed costs include a rent of $800 and a lease cost of $400 per month.
 
-Refer to Table 13-3. What is the average fixed cost for the month if ten bicycles are produced?

Quizplus · Accepted Answer

The average fixed cost is calculated by dividing the total fixed cost by the quantity produced. If the total fixed cost is $1200 and ten bicycles are produced, the average fixed cost is $1200/10 = $120.

Table 13-3 Consider the Following Firm Which Makes High-Performance Racing Bicycles. All