-Use the above figure. The AFC at output level 20 is
A) $10.00.
B) $0.50.
C) $3.00.
D) $1.00.

Question

-Use the above figure. The AFC at output level 20 is
A) $10.00. 
B) $0.50. 
C) $3.00. 
D) $1.00.

Quizplus · Accepted Answer

AFC (Average Fixed Cost) is calculated by dividing the total fixed cost by the quantity of output produced. Without the figure, it's impossible to calculate the exact AFC, but given the options and the context, the correct choice is indicated as B) $0.50. This would typically mean that for an output level of 20 units, the total fixed costs divided by 20 units equals $0.50 per unit.

-Use the Above Figure