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Time and Work

A firm's aver...

Question

A firm's average fixed cost is Rs $20$ at $6$ units of output. What will be at $4$ units of output?

A

Rs

60

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B

Rs

30

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C

Rs

40

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D

Rs

20

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Solution

The correct option is C Rs $30$
Total fixed cost = 20×6=120
Average fixed cost at 4th unit = 120/4=30

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