Answer to Question #245079 in Microeconomics for Buhle

Question

Use the data in the following table to the question

Output units total cost
0 100
1 110
2 130
3 166
4 220
5 300

The average fixed cost of the fifth unit is_____

Answer 1

Solution:

The average fixed cost of the fifth unit is 20.

The average fixed cost = $\frac{Total\;Fixed\;Cost}{Output}$

The fixed cost = 100

Output = 5

Average fixed cost = $\frac{100}{5} = 20$

The average fixed cost of the fifth unit is = 20