$$\begin{array}{l}
\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Output } \
\text { (Units per Day) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (Dollars per Day) }
\end{array} \
\hline 0 & 16 \
\hline 1 & 30 \
\hline 2 & 42 \
\hline 3 & 58 \
\hline 4 & 78 \
\hline
\end{array}\
\text { Table 21.4 }
\end{array}$$ At 3 units of output in Table 21.4, average fixed costs are
A) $16.00.
B) $19.50.
C) $5.33.
D) $15.50.

Question

$$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Output } \
\text { (Units per Day) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { (Dollars per Day) }
\end{array} \
\hline 0 & 16 \
\hline 1 & 30 \
\hline 2 & 42 \
\hline 3 & 58 \
\hline 4 & 78 \
\hline
\end{array}\
\text { Table 21.4 }
\end{array}$$ At 3 units of output in Table 21.4, average fixed costs are
A) $16.00.
B) $19.50.
C) $5.33.
D) $15.50.

Quizplus · Accepted Answer

To find the average fixed cost, we need to divide the total fixed cost by the level of output. At 3 units of output, the total fixed cost is $16. The average fixed cost is therefore:

Average fixed cost = Total fixed cost / Level of output
Average fixed cost = $16 / 3
Average fixed cost = $5.33

Therefore, the answer is C, $5.33.

At 3 Units of Output in Table 21