If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be 

klickinstitute

3 years ago

the correct answer is C = $10.00

TFC = AVC x Q
$20 x 5 bags x = $100

AVC = TFC/Q
AVC for 10 bags =
$100/10 =$10.00

Average fixed cost decreases as the number of output increases.

Semooretj

4 years ago

Answer should be C
Total fixed cost is now spread over 10 units making AFC = $10.00

Akande920

3 years ago

The correct answer should be C I.e. $10.00.
Because
AFC = FC/Q then FC = AFC × Q
Therefore, FC = $20 × 5 = $100
So, if FC for producing 5 bags is $100,
Then, AFC for 10 bags will be
AFC = FC/Q = $100/10 = $10.00.

Semooretj

4 years ago

Correct answer is C
TFC is 100
Therefore at 10 units of output AFC is 100/10 which is 10

Ifydgr8

4 years ago

C is the correct answer

Dironi123

3 years ago

no answer