Question
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2...
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 0 1 AVC 2 3 4 5 6 7 8 9 10 Quantity of Flashlights
The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC) for a flashlight producer. What is this producer's fixed costs? $7 $10 $13 $5 $
Answers
Answer
fixed cost is same at all level of output
Q=5
then
ATC=5
AVC=3
AFC=ATC-AVC=5-3=2
FC=AFC*Q
=2*5
=$10
the fixed cost is $10
option 2
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