A firm has a total variable cost of Rs $1, 000$ at $5$ units of output. If fixed costs are Rs $400$ . What will be the average total cost at $5$ units of output?

280

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60

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120

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1, 400

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Solution

The correct option is B Rs $280$
$Average total cost$ = $\frac{T C}{Q}$ = $\frac{T V C + T F C}{Q} = \frac{1, 000 + 400}{5}$ = $280$ .

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Similar questions

A firm is operating with a Total Variable Cost of Rs 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs 200, what will be the Average Total Cost of producing 5 units of output?
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Q. Complete the following table:

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Output (Units)	Average Fixed Cost (Rs.)	Average Variable Cost (Rs.)	Marginal Cost (Rs.)	Total Cost (Rs.)
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Q. Total product schedule of a firm at different levels of labour employment is given below. Calculate the firm's total variable cost, total cost, average cost, average variable cost and average fixed cost, if wage rate is Rs. 100 per day and total fixed cost is Rs. 1,000.

Labour Employment (Units)	1	2	3	4	5	6	7	8	9	10
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Total Output (Units)	Total cost (Rs)	Average Cost (Rs)	Marginal cost (Rs)
1	10	10.00	10
2	19	9.50	?
3	?	?	8
4	35	?	?
5	44	?	9
6	?	9.00	?
7	65	9.30	11
8	77	?	?

Average cost at

5 t h

unit = ______.

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A firm has a total variable cost of Rs1,000 at 5 units of output. If fixed costs are Rs400. What will be the average total cost at 5 units of output?

The correct option is B Rs280Average total cost = TCQ = TVC+TFCQ=1,000+4005 = 280.

A firm has a total variable cost of Rs $1, 000$ at $5$ units of output. If fixed costs are Rs $400$ . What will be the average total cost at $5$ units of output?

The correct option is B Rs $280$
$Average total cost$ = $\frac{T C}{Q}$ = $\frac{T V C + T F C}{Q} = \frac{1, 000 + 400}{5}$ = $280$ .