Answer: $10
Explanation:
Since the average fixed cost for producing 5 bags of rice is $20, then the total fixed cost will be:
= AFC × Quantity
= $20 × 5
= $100
Therefore, the average fixed cost of producing 10 bags will be:
= Total fixed cost / Quantity
= $100 / 10
= $10
Therefore, the average fixed cost is $10
