The total cost of producing 100 units of a good is $800. If a firm’s average variable cost is $5 per unit, then the firm’s

a). Average Fixed Costs = $3 since:

* Total Cost (TC) = $800

* Total Variable Cost (TVC) =$500

* then; Total Fixed Cost (TFC) = TC - TVC = $300

& Average Fixed Cost (AFC) = TFC/Produced Quantity = 300/100 = $3/unit produced

good answer

from all

_____________

Total Cost Per Unit= $800/100=$8

Total Cost= Fixed+Variable

$8=Fixed+$5

Fixed=$8-$5=$3

Hence,

Fixed Cost = $3 Per Unit

a. ...>>>>>>>>>>>>>>>>>>>>>>>average fixed cost is $3.

 Average Fixed Cost =(800-500)/100=3$

^^^^^^^^^^^^^^^^^^^^^^a. average fixed cost is $3.

The answer is choice A, average fixed costs.

Because:

Total cost =800

Total Variable cost =5(100) =500

Total fixed cost = TC - TVC

Total fixed cost =800 -500 =300

Average FC = Total Fixed Cost / Total quantity

Average FC =300 /100 =3

a. average fixed cost is $3.---------------------------

correct answer

a. average fixed cost is $3.

a. Bcz if you minus the total variable cost of $500 (5*100) from $800 it will result in total fixed cost of $300 and if $300 F.cost is divided into the number of units then the average fixed cost will be $3 (300/100)

Kind regards,

Vivek Kumar

average fixed cost is $3.....................