Refer to the the following table

Economics Aug 06, 2020

Refer to the the following table. Total Variable Total Average Output Cost Fixed Cost Fixed Cost (TVC) (TFC) (AFC) 1 500 2000 1000 2000 ?? 10 4000 2000 What is the AFC for 5 output? A. 2000 B. 200 C. 400 D. 300

Expert Solution

Answer option C) 400

AFC = TFC/Q

= 2000/5

= 400

So AFC = 400

So C) is true, which is 400

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