Question

41. A firm has a variable cost of Rs.1000 at 5 units of output . If fixed costs are Rs.400 what will be the average total cost at 5 units of output? a Rs.280 b. Rs.60 C. Rs.120 d. Rs. 1400​

Answer 1

Explanation:

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Answer 2

Explanation:

a firm variable costs = Rs. 1000 at 5 units

5 units = 1000. /-

1 unit = 1000/5 = 200 /-

if fixed cost = 400/-

means 1unit = 400/-

the average total cost = total costs of 1 units / 5

= 400+200/5

=. 600/5 = 120 /-

so the average total cost of 5units = Rs.120

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