Question

If Total Variable Cost and Total Fixed Cost of producing 10 units are ₹ 500 & ₹ 200, the value of average cost would be?
a) 50
b) 70
c) 20
d) 80

Answer 1

"Answer: B (70)

If Total Variable Cost and Total Fixed Cost of producing 10 units are ₹ 500 & ₹ 200 then the value of average cost will be Rs 70.

Now I am showing how to calculate average cost by using this formula

: - Total Cost of Production (Total Variable cost + Total fixed cost) divided / Total number of units produced

So the equation will be (500+200) / 10

So the answer will be 700/10 = 70 Rs.

"

Answer 2

Answer:

Answer: B (70)

If Total Variable Cost and Total Fixed Cost of producing 10 units are ₹ 500 & ₹ 200 then the value of average cost will be Rs 70.

Now I am showing how to calculate average cost by using this formula

: - Total Cost of Production (Total Variable cost + Total fixed cost) divided / Total number of units produced

So the equation will be (500+200) / 10

So the answer will be 700/10 = 70 Rs.

Explanation: