The formula for average fixed cost is: TCIQ. FC/Q + VCIQ. FC/Q + TCIQ. OFCIQ.

Question

Question

business economics

Answer 1

Answer #1

Average fixed cost= Total fixed cost / Quantity

Total cost= Total variable cost + total fixed cost

Since fixed cost does not change with the change in the output level.

AFC=FC/Q

Hence option fourth is the correct answer.

Answer 2

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