What Is the Average Fixed Cost When Output Is 120

question 43

Multiple Choice

What is the average fixed cost when output is 120 units in Figure 21.2?

• A) $0.67.
• B) $80.00.
• C) $96.00.
• D) $208.00.

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Definitions:

Standard Deviation

A technique for determining the level of fluctuation or spread in a set of data points.

Mean

The arithmetic average of a set of values, calculated as the total of all values divided by the number of values.

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Area

In mathematics, the extent of a two-dimensional surface within a boundary, measured in square units.