Question

Answer the question on the basis of the following cost data.

Output Total Cost
0 $24
1 $33
2 $41
3 $48
4 $54
5 $61
6 $69
The average fixed cost of producing 5 units of output is ??​

Answer 1

Answer:

since the fixed cost remains Same enduring the year

and since at 1st unit of output (total cost = total fixed cost as total variable cost is zero as no cost of labour)

therefore average fixed cost of producing 5 units of output=24