Figure 6.7 Figure 6.7 shows the cost structure for a firm.
-Refer to Figure 6.7.When the output level is 100 units,what is average fixed cost?

Question

Figure 6.7  Figure 6.7 shows the cost structure for a firm.
-Refer to Figure 6.7.When the output level is 100 units,what is average fixed cost?

Quizplus · Accepted Answer

Average fixed cost is given by the formula Total Fixed Cost / Output. From the graph, we can see that when the output level is 100 units, the Total Fixed Cost is $800. Therefore, the average fixed cost is $8 (800/100).

Figure 67 Figure 6