The Sunshine Corporation finds its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.OutputTVC1$302503654855110Refer to the above information. The average fixed cost of 3 units of output is:
A. $18.50.
B. $12.50.
C. $13.33.
D. $40.
Answer: C
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