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?

3.33

The correct answer is Option (3) → 3.33

We are given:

• Total Cost (TC) at zero output = 20
  Since no output is produced, this entire cost is the Fixed Cost (FC).

• Output level = 6 units

To find Average Fixed Cost (AFC):

AFC=Total Fixed Cost / Output = 20 / 6 = 3.33