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Can you explain the answer of this question below:
Average Fixed Cost = Rs. 20Quantity Produced = 10 units What will be the Average Fixed Cost of 20th unit?
- A:Rs. 10
- B:Rs. 20
- C:Rs. 5
- D:None
The answer is a.
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Most Upvoted Answer
Can you explain the answer of this question below:Average Fixed Cost =...
Well lets solve this step by step... As it is given in the question AFC =Rs 20.. Nd output =20 units so from this we can find out TFC.. TFC=AFC*output =20*10=Rs 200... Now we can easily find out AFC at 20th unit=TFC/output =200/20=Rs 10... Hence AFC at 20th unit is Rs 10
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Community Answer
Can you explain the answer of this question below:Average Fixed Cost =...
Calculation of Average Fixed Cost:
Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Quantity
Given:
AFC = Rs. 20
Quantity = 10 units
Total Fixed Cost (TFC) = AFC * Quantity
TFC = Rs. 20 * 10 = Rs. 200
To find the Average Fixed Cost of the 20th unit, we need to first calculate the Total Fixed Cost of producing 20 units.
Total Fixed Cost (TFC) = AFC * Quantity
TFC = Rs. 20 * 20 = Rs. 400
Calculation of Average Fixed Cost of 20th unit:
Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Quantity
Quantity = 20 units
TFC = Rs. 400
AFC = TFC / Quantity
AFC = Rs. 400 / 20 units
AFC = Rs. 20
Therefore, the Average Fixed Cost of the 20th unit is Rs. 20.
Option (b) Rs. 20 is the correct answer.
Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Quantity
Given:
AFC = Rs. 20
Quantity = 10 units
Total Fixed Cost (TFC) = AFC * Quantity
TFC = Rs. 20 * 10 = Rs. 200
To find the Average Fixed Cost of the 20th unit, we need to first calculate the Total Fixed Cost of producing 20 units.
Total Fixed Cost (TFC) = AFC * Quantity
TFC = Rs. 20 * 20 = Rs. 400
Calculation of Average Fixed Cost of 20th unit:
Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Quantity
Quantity = 20 units
TFC = Rs. 400
AFC = TFC / Quantity
AFC = Rs. 400 / 20 units
AFC = Rs. 20
Therefore, the Average Fixed Cost of the 20th unit is Rs. 20.
Option (b) Rs. 20 is the correct answer.
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Can you explain the answer of this question below:Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be the Average Fixed Cost of 20thunit?A:Rs. 10B:Rs. 20C:Rs. 5D:NoneThe answer is a.
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