If Total Variable Cost and Total Fixed Cost of Producing 10 Units Are 500 and 200, the Value of Average Cost Would Be?

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Solution

The correct option is B
70

Answer: b) 70
The formula for Total cost of production is = Total variable cost + Total fixed cost
= 500 + 200
= 700
The average cost will be = Total cost of production / Total number of units
= 700/ 10
= 70
Therefore, the average cost will be 70.
Also read:
How to Calculate Total Variable Cost
Fixed Cost Vs Variable Cost
Average Variable Costs Formula
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100

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