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Can you explain the answer of this question below:
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
The answer is b.
Most Upvoted Answer
Can you explain the answer of this question below:The average fixed co...
Given,
Average fixed cost for producing 6 units = Rs. 30

We know that,
Average fixed cost (AFC) = Total fixed cost / Output

Let's assume the total fixed cost to be 'F'.

So,
AFC = F / 6

F = 6 x AFC

Now, we need to find the AFC for producing 4 units of the product.

So,
AFC = F / 4

Substituting the value of F in the above equation, we get

AFC = (6 x AFC) / 4

AFC = (3/2) x AFC

AFC = AFC + (1/2) x AFC

Therefore, the AFC for producing 4 units will be 1/2 of the AFC for producing 6 units.

So,
AFC for producing 4 units = (1/2) x Rs. 30

AFC for producing 4 units = Rs. 15

But we need to find the total fixed cost for producing 4 units.

Total fixed cost = AFC x Output

Total fixed cost = Rs. 15 x 4

Total fixed cost = Rs. 60

Hence, the same cost for producing an output of 4 units will be Rs. 45.
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Community Answer
Can you explain the answer of this question below:The average fixed co...
Average fixed cost: 30 so fixed cost: 6*30: 180 there for average fixed cost for 4 unit is 180/4 which gives 45
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Can you explain the answer of this question below: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:20The answer is b.
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Can you explain the answer of this question below: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:20The answer is b. 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 Can you explain the answer of this question below: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:20The answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below: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:20The answer is b..
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