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Standard XI

Economics

Short Run Average and Marginal Costs

The average f...

Question

The average fixed cost at 6 units of output is ₹20. The average variable cost at 5 units of output is ₹40. What is the total cost of producing 5 units?

[1 mark]

₹320

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₹324

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₹640

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₹600

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Solution

The correct option is A ₹320
TC = TFC + TVC
TFC = 20 × 6 = 120
TVC for 5 units = 40 × 5 = 200
TC = 120 + 200
TC = 320

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The average fixed cost at 6 units of output is ₹20. The average variable cost at 5 units of output is ₹40. What is the total cost of producing 5 units? [1 mark]

The correct option is A ₹320TC = TFC + TVC TFC = 20 × 6 = 120 TVC for 5 units = 40 × 5 = 200 TC = 120 + 200 TC = 320

The average fixed cost at 6 units of output is ₹20. The average variable cost at 5 units of output is ₹40. What is the total cost of producing 5 units?

[1 mark]

The correct option is A ₹320
TC = TFC + TVC
TFC = 20 × 6 = 120
TVC for 5 units = 40 × 5 = 200
TC = 120 + 200
TC = 320