Assume that Rickie makes tacos which is an extremely competi…
Assume that Rickie makes tacos which is an extremely competitive business. How does this business work? This question is optional but good to consider. The market price is usually set around $4.98 per taco and of course that pesky sales tax. Rickie realizes a fixed cost of $900. And at the same time the variable cost sits at $2,000 for the first 10 tacos, $1600 for the second 30 tacos, and $1500 for each set of 50 tacos after that. What is his AFC if he produces 100 tacos?