The table below shows the relationship between a firm's output and its production costs.
| Output | Average variable costs (£) | Average total costs (£) |
|---|---|---|
| 10 | 80 | 140 |
| 20 | 65 | 95 |
| 30 | 55 | 75 |
When the firm increases its output from
10 to 20 units, average fixed costs do not change.
10 to 20 units, average fixed costs fall by £20.
20 to 30 units, average fixed costs fall by £10.
20 to 30 units, average fixed costs fall by £5.
