Question

Question 17: With total fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average
variable costs of Rs. 2.50. Its output is:
A) 200 units.
B) 400 units
C) 800 units.
D) 1,600 units.

Answer 1

Correct option is

A

Rs280

Average total cost =

Q

TC

=

Q

TVC+TFC

=

5

1,000+400

= 280.

Answer 2

c is correct option for this question