Answer :

Final answer:

Average fixed cost is Question 8Select one: b. tc divided by Q.

Explanation:

Average fixed cost (AFC) is calculated by dividing total fixed cost (TC) by the quantity of output (Q). This means that AFC represents the fixed cost per unit of output produced. Mathematically, AFC = TC / Q. Total fixed cost (TC) refers to the sum of all costs that do not vary with the level of output, such as rent, insurance, and salaries of permanent staff. By dividing TC by the quantity of output (Q), we get the average fixed cost per unit.

The other options provided do not accurately represent the calculation of average fixed cost. Option a, AC minus AVC, involves the average cost (AC) and average variable cost (AVC), which are different concepts from average fixed cost. Option c, AVC minus MC, compares average variable cost with marginal cost, which is unrelated to the calculation of average fixed cost. Option d, TC minus TVC, subtracts total variable cost from total cost, which does not yield average fixed cost. Therefore, the correct answer is Option b, tc divided by Q, as it represents the correct calculation for average fixed cost.

Thanks for taking the time to read Average fixed cost is a AC minus AVC b TC divided by Q c AVC minus MC d TC minus TVC. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada