Question

if total fixed cost of producting 5 units of output is rs.20 and total variable cost is rs.50, then what producing 5 units of output ?at will be the value of total cost i​

Answer 1

The value of the total cost of producing 5 units of output is Rs. 14.

Given:

The variable cost is Rs. 50

The total fixed cost of producing 5 units of output = Rs 20

To find:

The value of the total cost of producing 5 units of output

Solution:

Formula:

Average total cost = TC / Q = TVC + TFC / Q  

where,

TC = total cost

Q = quantity

TVC = total variable cost

TFC = total fixed cost

∴ TC = TVC + TFC

Now put the values  

Average total cost = Rs (50 + 20) / 5

Average total cost = Rs 70 / 5

Average total cost = Rs 14

#SPJ1