The numbers of units produced by a firm and the corresponding costs are tabulated below-WlineNo- of - units - Total cost lllhine100 - Rs 2000 Wlhline250 - Rs 3500 wlhline array Assuming constant variable cost per unit- calculate the AFC for 100 units-A- Rs 10B- Rs 20C- Rs 100D- Rs 1000

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Standard XI

Economics

Total Costs in the Short Run

The numbers o...

Question

The numbers of units produced by a firm and the corresponding costs are tabulated below.

$\begin{matrix} N o . o f u n i t s & T o t a l c o s t 100 & R s 2000 250 & R s 3500 \end{matrix}$

Assuming constant variable cost per unit, calculate the AFC for 100 units.

Rs 10

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Rs 20

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Rs 100

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Rs 1000

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Solution

The correct option is A
Rs 10

Let the fixed cost be F and the variable cost per unit be v.

F +100 v = Rs 2000
F + 250 v = Rs 3500

On solving, we get F = 1000 =TFC and v = 10 = AVC
Now, AFC = TFC / 10 = 1000/100 = Rs 10

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The numbers of units produced by a firm and the corresponding costs are tabulated below. No. of unitsTotal cost100Rs 2000250Rs 3500 Assuming constant variable cost per unit, calculate the AFC for 100 units.

The correct option is A Rs 10 Let the fixed cost be F and the variable cost per unit be v. F +100 v = Rs 2000 F + 250 v = Rs 3500 On solving, we get F = 1000 =TFC and v = 10 = AVC Now, AFC = TFC / 10 = 1000/100 = Rs 10

The numbers of units produced by a firm and the corresponding costs are tabulated below.

$\begin{matrix} N o . o f u n i t s & T o t a l c o s t 100 & R s 2000 250 & R s 3500 \end{matrix}$

Assuming constant variable cost per unit, calculate the AFC for 100 units.

The correct option is A
Rs 10

Let the fixed cost be F and the variable cost per unit be v.

F +100 v = Rs 2000
F + 250 v = Rs 3500

On solving, we get F = 1000 =TFC and v = 10 = AVC
Now, AFC = TFC / 10 = 1000/100 = Rs 10