Refer to the Above Data

question 77

Multiple Choice

Refer to the above data.The average fixed cost of producing 3 units of output is:

• A) $8.
• B) $7.40.
• C) $5.50.
• D) $6. Total fixed costs are $24 (i.e. ,costs where output level is zero).Average fixed costs at 3 units of output is $24/3 = $8.