Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output.
-Refer to Figure 9-3.At the output level OC,average fixed cost is equal to _____.
A)ZM
B)GZ
C)GM
D)MC

Question

Use the following figure to answer the question : Figure 9-3 : shows the marginal cost curve,average total cost curve,average variable cost curve,and marginal revenue curve for a firm for different levels of output. 
-Refer to Figure 9-3.At the output level OC,average fixed cost is equal to _____.
A)ZM 
B)GZ 
C)GM 
D)MC

Quizplus · Accepted Answer

Average Fixed Cost (AFC) is calculated as the total fixed cost divided by the quantity of output. At output level OC, the distance ZM represents the AFC, as it is the vertical distance from the horizontal axis (representing quantity) to the AFC curve at quantity OC.

Use the Following Figure to Answer the Question : Figure