Option 3: 3.33 -> At zero output, total cost equals fixed cost since there are no variable costs. Therefore, FC = 20. Average Fixed Cost (AFC) is calculated as FC/Q. At the 6th level of output: AFC = 20/6 = 3.33. Fixed costs remain constant regardless of output level, but AFC decreases as output increases because the same fixed cost is spread over more units. -> correct
At zero level of output ,if the total cost(TC) is 20. What will be the value of the Average Fixed cost (AFC) at the 6th level of output?
CUET UG 2025 — Economics Micro
2025mcqeasy
At zero level of output ,if the total cost(TC) is 20. What will be the value of the Average Fixed cost (AFC) at the 6th level of output?
Official previous-year question
Held on 30 May 2025 · Verified 13 Jul 2026.
Options
- A
2.86
- B
20
- C
3.33
- D
120
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