TFC =10000/- AVC= 3/- calculate the average cost of production at 20 units
a. 500
b. 503
c. 514
d. 603
Answers
Given : TFC =10000/- AVC= 3/-
To Find : the average cost of production at 20 units
a. 500
b. 503
c. 514
d. 603
Solution:
Total Fixed Cost = 10000
Average Variable cost per unit = 3
Variable Cost of 20 Units = 20 * 3 = 60
Total Cost = Fixed Cost + variable cost
=> Total Cost = 10000 + 60
=> Total Cost = 10060
Unit Produced = 20
average cost of production at 20 units = 10060/20
= 1006/2
= 503
the average cost of production at 20 units = 503
option B is correct
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Given :
TFC =10000/- AVC= 3/-
To Find :
the average cost of production at 20 units
a. 500
b. 503
c. 514
d. 603
Solution:
Total Fixed Cost = 10000
Average Variable cost per unit = 3
Variable Cost of 20 Units = 20 * 3 = 60
Total Cost = Fixed Cost + variable cost
=> Total Cost = 10000 + 60
=> Total Cost = 10060
Unit Produced = 20
average cost of production at 20 units = 10060/20
= 1006/2
= 503
the average cost of production at 20 units = 503
option B is correct
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