When a firm is producing 20 units, its ATC is Rs.40 and AVC Rs.37. The total fixed cost of the firm is _____.

Rs.40

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Rs.60

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Rs.80

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Rs.100

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Solution

The correct option is C Rs.60
TC = ATC X Q
= 40 X 20
= Rs. 800

TVC = AVC X Q
=37 X 20
= Rs. 740

TFC = 800 - 740
= Rs. 60

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When a firm is producing 20 units, its ATC is Rs.40 and AVC Rs.37. The total fixed cost of the firm is _____.

The correct option is C Rs.60TC = ATC X Q = 40 X 20 = Rs. 800TVC = AVC X Q =37 X 20 = Rs. 740TFC = 800 - 740 = Rs. 60

The correct option is C Rs.60
TC = ATC X Q
= 40 X 20
= Rs. 800

TVC = AVC X Q
=37 X 20
= Rs. 740

TFC = 800 - 740
= Rs. 60