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.A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output?
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.A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 u...
Answer:
To calculate the average fixed cost (AFC) at 20 units of output, we need to understand the concept of AFC and how it is calculated.
Average fixed cost (AFC) is the fixed cost per unit of output. It is calculated by dividing the total fixed cost by the total quantity of output.
Given:
AFC = Rs. 200 at 10 units of output
To find AFC at 20 units of output, we need to calculate the total fixed cost at 10 units of output and then divide it by 20 units of output.
Let's break down the calculation step by step:
Step 1: Calculate the total fixed cost at 10 units of output:
Since AFC is given as Rs. 200 at 10 units of output, we can calculate the total fixed cost at 10 units of output by multiplying AFC with the number of units of output.
Total fixed cost at 10 units of output = AFC * Number of units of output
Total fixed cost at 10 units of output = Rs. 200 * 10
Total fixed cost at 10 units of output = Rs. 2000
Step 2: Calculate AFC at 20 units of output:
Now that we have the total fixed cost at 10 units of output, we can calculate AFC at 20 units of output by dividing the total fixed cost by the number of units of output.
AFC at 20 units of output = Total fixed cost at 10 units of output / Number of units of output
AFC at 20 units of output = Rs. 2000 / 20
AFC at 20 units of output = Rs. 100
Therefore, the AFC at 20 units of output is Rs. 100.
Explanation:
The average fixed cost (AFC) is the fixed cost per unit of output. It represents the cost that remains constant regardless of the level of output. In this case, the AFC is given as Rs. 200 at 10 units of output.
By calculating the total fixed cost at 10 units of output, we determine that it is Rs. 2000. This means that the firm has a fixed cost of Rs. 2000 to produce 10 units of output.
To find the AFC at 20 units of output, we divide the total fixed cost by the number of units of output. In this case, the AFC at 20 units of output is Rs. 100. This means that for each unit of output, the firm incurs a fixed cost of Rs. 100.
It's important to note that AFC decreases as the level of output increases because the fixed cost is spread over a larger number of units. This is known as economies of scale.
To calculate the average fixed cost (AFC) at 20 units of output, we need to understand the concept of AFC and how it is calculated.
Average fixed cost (AFC) is the fixed cost per unit of output. It is calculated by dividing the total fixed cost by the total quantity of output.
Given:
AFC = Rs. 200 at 10 units of output
To find AFC at 20 units of output, we need to calculate the total fixed cost at 10 units of output and then divide it by 20 units of output.
Let's break down the calculation step by step:
Step 1: Calculate the total fixed cost at 10 units of output:
Since AFC is given as Rs. 200 at 10 units of output, we can calculate the total fixed cost at 10 units of output by multiplying AFC with the number of units of output.
Total fixed cost at 10 units of output = AFC * Number of units of output
Total fixed cost at 10 units of output = Rs. 200 * 10
Total fixed cost at 10 units of output = Rs. 2000
Step 2: Calculate AFC at 20 units of output:
Now that we have the total fixed cost at 10 units of output, we can calculate AFC at 20 units of output by dividing the total fixed cost by the number of units of output.
AFC at 20 units of output = Total fixed cost at 10 units of output / Number of units of output
AFC at 20 units of output = Rs. 2000 / 20
AFC at 20 units of output = Rs. 100
Therefore, the AFC at 20 units of output is Rs. 100.
Explanation:
The average fixed cost (AFC) is the fixed cost per unit of output. It represents the cost that remains constant regardless of the level of output. In this case, the AFC is given as Rs. 200 at 10 units of output.
By calculating the total fixed cost at 10 units of output, we determine that it is Rs. 2000. This means that the firm has a fixed cost of Rs. 2000 to produce 10 units of output.
To find the AFC at 20 units of output, we divide the total fixed cost by the number of units of output. In this case, the AFC at 20 units of output is Rs. 100. This means that for each unit of output, the firm incurs a fixed cost of Rs. 100.
It's important to note that AFC decreases as the level of output increases because the fixed cost is spread over a larger number of units. This is known as economies of scale.
Community Answer
.A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 u...
AFC= Rs.200 only..
as AFC tends to be remain constant at each and every level of output
as AFC tends to be remain constant at each and every level of output
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.A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about .A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for .A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output?.
.A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about .A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for .A firm’s AFC is Rs. 200 at 10 units of output what will be it at 20 units of output?.
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