if total cost of producing is 6 unit of a commodity is rs 180 when average cost will be
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The average cost of the commodity will be Rs. 30
Given:
Total number of units = 6
The total cost of the commodity = Rs. 180
To Find:
The total average cost
Solution:
Using the formula to calculate average cost -
AC = Commodity Cost/ Number of units or
AC = TC/Q
where -
TC is the total cost and
Q is the total number of units
Substituting the values -
= 180/6
= 30
Answer: The average cost of the commodity will be Rs. 30
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