A firm is producing 50 units of output at a total cost of $1,000, with a per-uni

Question

A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm’s average fixed cost? A) $12 B) $4 C) $20 D) $28
Can anyone explain how to get this answer? Thanks in advance! A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm’s average fixed cost? A) $12 B) $4 C) $20 D) $28
Can anyone explain how to get this answer? Thanks in advance! A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm’s average fixed cost? A) $12 B) $4 C) $20 D) $28
Can anyone explain how to get this answer? Thanks in advance! A firm is producing 50 units of output at a total cost of $1,000, with a per-unit variable cost of $8. What is the firm’s average fixed cost? A) $12 B) $4 C) $20 D) $28
Can anyone explain how to get this answer? Thanks in advance!

Explanation / Answer

TC= FC + VC

1000= FC + (8x50)

FC= 600

AFC= 600/50=12

Ans- A

The average fixed cost is 12

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