The total fixed cost of production at 5 units of output is Rs.10 and the total variable cost is Rs. 40. Find out the total cost of production.
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Answer:
20 is the correct answer
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Explanation:
Given The total fixed cost of production at 5 units of output is Rs.10 and the total variable cost is Rs. 40. Find out the total cost of production.
- Let the total cost of production be p
- so fixed cost will be 5 units
- The output of this is 10 units.
- the total variable cost is Rs 40
- According to the question we have
- So p x 10 = 40 – 5
- Or 10 p = 35
- Or p = 35 / 10
- Or p = 3.5
Reference link will be
https://brainly.in/question/24222650
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