Question

if total fixed cost of producting 5 units of output is rs.20 and total variable cost is rs.50, then wof producing 5 units of output ?at will be the value of total cost of producing 5 units of output ?
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Answer 1

The total cost is Rs 14.

Explanation:

We are given that:

• The total fixed cost of producing 5 units of output = Rs 20
• Total variable cost = Rs 50
• To Find: The total cost of producing 5 units of output= ?

Solution:

Formula:

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

Now put the values  

Average total cost = Rs 50 + 20 / 5

Average total cost = 70 / 5 = Rs 14