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Find AFC of 3 units.


  • a)
    5

  • b)
    10

  • c)
    15

  • d)
    25

Correct answer is option 'A'. Can you explain this answer?
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Find AFC of3units.a)5b)10c)15d)25Correct answer is option 'A'. Can you...
AFC (Average Fixed Cost) is calculated by dividing the total fixed cost by the quantity of output produced.

Formula: AFC = Total Fixed Cost / Quantity of Output

Fixed costs are those costs that do not change with the level of output, such as rent, salaries, and equipment costs. These costs are incurred even if no output is produced. By dividing the total fixed cost by the quantity of output, you can determine the average fixed cost per unit of output.
Correct option is A.
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Find AFC of3units.a)5b)10c)15d)25Correct answer is option 'A'. Can you...
Finding AFC (Average Fixed Cost) of 3 units:

AFC is calculated by dividing the total fixed cost by the number of units produced.

Total fixed cost is the cost that does not change with the change in the number of units produced.

In this case, the total fixed cost is the cost of producing 0 units, which is given as 15.

Therefore, AFC can be calculated as follows:

AFC = Total fixed cost / Number of units produced

AFC = 15 / 3

AFC = 5

Hence, the correct answer is option 'A' (5).
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Find AFC of3units.a)5b)10c)15d)25Correct answer is option 'A'. Can you...
15÷3=5
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Find AFC of3units.a)5b)10c)15d)25Correct answer is option 'A'. Can you explain this answer?
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