Question

Tankao makes earbuds for mobile devices. When Tankao produces 20 sets of earbuds, its average variable cost is $5 per set and its average total cost is $8 per set. Tankao's:
marginal cost is less than $3 per set.
marginal cost is equal to its average fixed cost.
marginal cost is $3 per set.
average fixed cost is $3 per set.

Answer 1

Answer:

average fixed cost is $3 per set.

Explanation:

From the information given, we can say about the average fixed cost only

The average total cost is $8 per set and average variable cost is $5 per set -> average fixed cost = $8 - $5 = $3 per set