Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Question
Chapter 7, Problem
To determine
To find: The table showing TFC and AFC and the curve of these costs.
Expert Solution & Answer

Explanation of Solution
Below is the complete table. Here, the average fixed cost is calculated by dividing the total fixed cost by outputs.
Output | Total Fixed cost (fig. in thousands) | AFC (fig. in thousands) |
0 | 360 | 0 |
1 | 360 | 360 |
2 | 360 | 180 |
3 | 360 | 120 |
4 | 360 | 90 |
5 | 360 | 72 |
6 | 360 | 60 |
Below is the curve that shows the total fixed cost curve and the average fixed cost curve. Here, the horizontal axis shows the output. While the vertical axis shows the
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Microeconomics: Principles & Policy
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