15.3k views
1 vote
At 100 units of output, total cost is $10,000 and variable cost is $6,000. What does average fixed cost equal at 100 units?

User Blackraven
by
8.3k points

1 Answer

0 votes

Answer:

$40

Step-by-step explanation:

Total costs are comprised of total variable costs plus total variable costs. i.e., total costs = variable cost +fixed costs

in this situation,

$10,000 = $6,000 + fixed costs

Fixed costs = $10,000 -$6000

fixed costs = $4000

Average fixed cost is the fixed cost divided by total output

=$4000/100

= $40

User Simon Hobbs
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories