Question

Determine fixed​ cost, F; average variable​ cost, AVC; average​ cost, AC; marginal​ cost, MC; and average​ fixed-cost, AFC. The fixed cost function​ (F) is

Answer 1

Fixed Cost Function = Average Cost - Average Variable cost

Step-by-step explanation:

A fixed cost is the one which does not changes with the level of production. These cost are irrelevant to number of units production. It is not affected by the units produced and sold. The change in fixed cost does not affect the marginal cost. The marginal cost is the variable cost that is incurred by producing one more unit. These costs are affected by the level of production.