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18 April, 15:01

If total cost of producing 20 units of output is $1,000 and average variable cost is $35, what is the firm's average fixed cost at that level of output?

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  1. 18 April, 18:05
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    The correct answer is $15

    Explanation:

    Units = 20

    Total Cost = $1,000

    Average variable cost = $35

    $1000 : 20 (units) = $50 total cost per unit

    $50 (Total cost per unit) - $35 (Average variable cost) = $15 average fixed cost
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