A firm's average fixed cost when producing 2,000 units of output equals $10.When only 1,000 units of output are produced:

Name: A firm's average fixed cost when producing 2,000 units of output equals $10.When only 1,000 units of output are produced:
Brand: Quizplus
Rating: 5.0 (50 reviews)

Question

Quizplus · Accepted Answer

Average fixed cost (AFC) is calculated by dividing total fixed costs by the number of units produced. If AFC is $10 for 2,000 units, the total fixed cost is $20,000. When producing 1,000 units, AFC is $20,000/1,000 = $20.

A Firm's Average Fixed Cost When Producing 2,000 Units of Output