Question

A firm's average fixed cost (AFC) is 10 when it produces Q=2. Then at Q=5, AFC is ... ОА. 8 Ов. 2 ос. 20

2.

3.

4.

5.

6.

7.

8.

Answer 1

1. Option E.
FC = AFC*Q = 10*2 = 20
AFC at Q= 5, AFC = 20/5 = 4

2. Option D
Because the firm’s output can be substituted by other firms output

3. Option A
As average fixed cost becomes negligible, average variable cost approaches the average total cost

4. Option C.
MC=11, is at Q=8, So that it continues to produce where MC=MR =9, Q=6

5. Image not clear

6. Option E

Pipes	TVC	TFC	TC	AVC	AFC	AC	TR	Profit
0	0	50	50				0	-50
1	20	50	70	20.00	50.00	70.0	35	-35
2	35	50	85	17.50	25.00	42.5	70	-15
3	55	50	105	18.33	16.67	35.0	105	0
4	85	50	135	21.25	12.50	33.8	140	5
5	175	50	225	35.00	10.00	35.0	175	-50

7.

True
True
False
True

8.

TP	AFC	AVC	ATC	MC
10	120	100	220
20	60	90	150	80
30	40	90	130	90
40	30	100	130	130
50	24	108	132	140