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,average fixed cost is

Name: 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,average fixed cost is
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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,average fixed cost is

Quizplus · Accepted Answer

When output level is 100 units, the total fixed cost is $800 ($8 x 100). To find the average fixed cost, we divide the total fixed cost by the output level. So, $800/100 = $8. Therefore, the average fixed cost is $8.

Figure 6-7 Figure 6-7 Shows the Cost Structure for a Firm