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A firm operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table.
Q. ​When production is 40 units, the average cost is:
  • a)
    Rs. 4.40
  • b)
    Rs. 7.50
  • c)
    Rs. 85
  • d)
    Rs. 92.50
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A firm operating in perfect competition sells as much as of its produc...
AC = TFC + TVC /output
= 300 + 3400/40
= 3700/40
= 92.50
Free Test
Community Answer
A firm operating in perfect competition sells as much as of its produc...
Total Cost=V.C. +F.C.
T.C.= 3400+300
= 3700

A.C.= T.C./No. of output
A.C.=3700/40
A.C.=92.50

So, Option (d) correct answer.
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A firm operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table.Q.When production is 40 units, the average cost is:a)Rs. 4.40b)Rs. 7.50c)Rs. 85d)Rs. 92.50Correct answer is option 'D'. Can you explain this answer?
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A firm operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table.Q.When production is 40 units, the average cost is:a)Rs. 4.40b)Rs. 7.50c)Rs. 85d)Rs. 92.50Correct answer is option 'D'. Can you explain this answer? 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 operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table.Q.When production is 40 units, the average cost is:a)Rs. 4.40b)Rs. 7.50c)Rs. 85d)Rs. 92.50Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table.Q.When production is 40 units, the average cost is:a)Rs. 4.40b)Rs. 7.50c)Rs. 85d)Rs. 92.50Correct answer is option 'D'. Can you explain this answer?.
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