The table given below shows the total cost of producing different units of the output by a competitive firm. Table 21.4
In Table 21.4, at 4 units of output,

Question

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 21.4
 In Table 21.4, at 4 units of output,

Quizplus · Accepted Answer

At 4 units of output, the total cost is $70, which can be broken down into:

- Total fixed cost (TFC) = $25
- Total variable cost (TVC) = $45

Therefore, we can calculate the average fixed cost (AFC) and average variable cost (AVC) at 4 units of output as:

- AFC = TFC / Q = $25 / 4 = $6.25
- AVC = TVC / Q = $45 / 4 = $11.25

Therefore, the best choice is A, as AFC = $6.25 and AVC = $11.25 (not $10 as the other option implies).

The Table Given Below Shows the Total Cost of Producing