$\begin{array}{l}
\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Output } \
\text { (Units per Day) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (Dollars per Day) }
\end{array} \
\hline 0 & 16 \
\hline 1 & 30 \
\hline 2 & 42 \
\hline 3 & 58 \
\hline 4 & 78 \
\hline
\end{array}\
\text { Table 21.4 }
\end{array}$ 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

In Table 21.4, at 3 units of output, the total fixed cost is $16.00 and the average fixed cost is calculated by dividing the total fixed cost by the output quantity. Therefore, AFC = $16.00/3 = $5.33. Option C is the correct answer.

At 3 Units of Output in Table 21