Question

if TFC of producing 5 units of output is rs 20. and TVC is rs.50 then what will be the TC of producing 5 units ?​

Answer 1

Answer:

TC5= Rs 30

TFC = Rs 5

so, TVC5 = TC5 - TFC = 30 - 5 = Rs 25

Now, we know that AVC = TVC/ No. of units

so, AVC at 5 units of output = 25/5 = Rs 5

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