Krista's dry-cleaning business incurs $900 per month in fixed costs. Last month her total output was 3,000 pounds of clothes. This month her total output fell to 2,700 pounds. This means her average fixed cost _____ by a little more than _____ cents.

Answer: To find out by how much the average fixed cost changed, we first need to calculate the average fixed cost for each month. The average fixed cost (AFC) is the total fixed cost (TFC) divided by the quantity of output (Q).

For last month, when the output was 3,000 pounds, the AFC was: AFC = TFC / Q AFC = $900 / 3,000 pounds AFC = $0.30 per pound

This month, with a total output of 2,700 pounds, the AFC is: AFC = TFC / Q AFC = $900 / 2,700 pounds AFC = $0.3333... per pound

Now, to find out by how much the average fixed cost increased: Increase in AFC = AFC this month - AFC last month Increase in AFC = $0.3333... - $0.30 Increase in AFC = $0.0333... per pound

Since we want to express this increase in cents, we multiply by 100 (since $1 equals 100 cents): Increase in AFC = $0.0333... * 100 Increase in AFC = 3.33... cents

Therefore, the average fixed cost increased by a little more than 3.33 cents per pound.