Table 12-9

-Refer to Table 12-9.The average fixed cost of producing 5 posters is
A) $1.00.
B) $2.00.
C) $3.00.
D) $5.00.

Name: Table 12-9 -Refer to Table 12-9.The average fixed cost of producing 5 posters is A) $1.00. B) $2.00. C) $3.00. D) $5.00.
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Question

Table 12-9
 
-Refer to Table 12-9.The average fixed cost of producing 5 posters is
A) $1.00. 
B) $2.00. 
C) $3.00. 
D) $5.00.

Quizplus · Accepted Answer

Average fixed cost (AFC) is calculated by dividing total fixed cost (TFC) by the quantity of output. If the TFC is $10 (as inferred from the choices), then AFC for 5 posters is $10/5 = $2.00.

Table 12-9 -Refer to Table 12-9.The Average Fixed Cost of Producing 5