Question

When the total cost of production of 300 units if fixed cost is rs 10000 and average variable cost is rs 20?

Answer 1

Answer:

The total cost of production of 300 units if fixed cost is rs 10000 and average variable cost is rs 20 is Rs 16000

Explanation:

Let Y be the overall cost of production, x the variable cost, a the number of units, and c the fixed cost.

The equation is written as:

Y = ax + c

Now, in this case we have that:

a = 300 units

x = 20

c = 10000

Doing the substitution we have:

Y = 20 × 300 + 10000

= 16000

The total cost of production is Rs 16000