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The average fixed cost for producing an output of 6 units of a product by a firm is Rs. 30. The same cost for producing an output of 4 units will be Rs. _________.
  • a)
    50
  • b)
    45
  • c)
    25
  • d)
    20
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The average fixed cost for producing an output of 6 units of a product...
Given:
- Average fixed cost for producing an output of 6 units of a product = Rs. 30

To find:
- Same cost for producing an output of 4 units

Solution:
The average fixed cost (AFC) is the total fixed cost (TFC) divided by the quantity of output (Q).

Therefore, the TFC for producing 6 units can be calculated as follows:

AFC = TFC / Q
Rs. 30 = TFC / 6
TFC = Rs. 180

Now, let's find the AFC for producing 4 units:

AFC = TFC / Q
AFC = Rs. 180 / 4
AFC = Rs. 45

Therefore, the same cost for producing an output of 4 units will be Rs. 45.

Hence, option (b) is the correct answer.
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Community Answer
The average fixed cost for producing an output of 6 units of a product...
X/6=30. let x is our TFC
Then, x=180=TFC,
The TFC remains fixed and constant there is no rise or fall in it.
At every level of output it remains constant.
so, at level 4
AFC= 180/4= 45.

I wish it will help you.
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The average fixed cost for producing an output of 6 units of a product by a firm is Rs. 30. The same cost for producing an output of 4 units will be Rs. _________.a)50b)45c)25d)20Correct answer is option 'B'. Can you explain this answer?
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