Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

250/Q
250
10
250/Q + 10

The correct answer is C. 10.

Average fixed cost (AFC) is the total fixed cost divided by the quantity produced. In this case, the total fixed cost is $250, so the average fixed cost is $250/Q = 10.

Option A is incorrect because it is the average variable cost. Option B is incorrect because it is the total cost. Option D is incorrect because it is the sum of the average fixed cost and the average variable cost.

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