The total cost at 5 units output is Rs. 30. The fixed cost is Rs. 5. The average variable cost at 5 units of output is.
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20 i hope this will help u
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The average cost of production at 5 units of output in this case is Rs.5
Explanation:
- The average variable cost is calculated by dividing the total variable cost of production by the number of output produced by the firm or company.
- The total cost of production is denoted as the sum total or addition of the total fixed cost and total variable cost of production.In this case,the total cost of production is given as Rs. 30 and the total fixed cost is Rs.5.Therefore,total variable cost of production in this case=.
- Now,the total variable cost of production is Rs.25 and the total output produced in this case are 5 units.Hence,based on the mathematical formula to compute average variable cost of production,the average cost at 5 units of output in this case=.Hence,the average cost of production at 5 units of output is Rs.5.
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