If total fixed cost is equal to $1,000 and there are 100 units being produced, average fixed cost is equal to_________

Answer 1

Average fixed cost (AFC) is calculated by dividing total fixed costs by the number of units produced.

In this case, the total fixed cost is $1,000, and the number of units produced is 100.

To calculate the average fixed cost:

\[ \text{Average Fixed Cost (AFC)} = \frac{\text{Total Fixed Cost}}{\text{Number of Units Produced}} = \frac{1000}{100} = 10 \]

Therefore, the average fixed cost is equal to $10.