If you know that with 8 units of output, average fixed cost is INR 12.50 and average variable cost is INR 81.25, then total cost at this output level is

Rs 93.75

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Rs 181.25

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Rs 750

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Rs 662.5

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Solution

The correct option is C
Rs 750

SAC=AFC+AVC
$= 12.5 + 81.25 = 93.75$
$T C = S A C \times Q 93.75 \times 8 = R s 750$

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If you know that with 8 units of output, average fixed cost is INR 12.50 and average variable cost is INR 81.25, then total cost at this output level is

The correct option is C Rs 750 SAC=AFC+AVC =12.5+81.25=93.75 TC=SAC×Q93.75×8=Rs 750

The correct option is C
Rs 750

SAC=AFC+AVC
$= 12.5 + 81.25 = 93.75$
$T C = S A C \times Q 93.75 \times 8 = R s 750$