WAEC Economics 2020 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be

A. $2.00
B. $4.00Correct
C. $10.00
D. $20.00

Explanation

Total fixed cost = AFC x output = $20 x 5 = $100 (constant). At 10 units, AFC = $100/10 = $10.00... recompute: total fixed cost=$100, output=10, AFC=100/10=$10.00.

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