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A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:
- a)Rs. 300
- b)Rs. 200
- c)Rs. 150
- d)Rs. 100
Correct answer is 'C'. Can you explain this answer?
Most Upvoted Answer
A firm producers 10 units of a commodity at an average total cost of R...
Given information:
- Number of units produced = 10
- Average total cost = Rs. 200
- Fixed cost = Rs. 500
To find out the component of average variable cost in the total cost, we need to calculate the average variable cost first.
Average variable cost (AVC) = Total variable cost / Number of units produced
Total cost = Total fixed cost + Total variable cost
Average total cost (ATC) = Total cost / Number of units produced
Since we know the value of ATC and fixed cost, we can calculate the value of total variable cost.
Total cost = Total fixed cost + Total variable cost
ATC * Number of units produced = Fixed cost + Total variable cost
Rs. 200 * 10 = Rs. 500 + Total variable cost
Total variable cost = Rs. 1500 - Rs. 500
Total variable cost = Rs. 1000
Now, we can calculate the value of AVC.
AVC = Total variable cost / Number of units produced
AVC = Rs. 1000 / 10
AVC = Rs. 100
Therefore, the component of average variable cost in the total cost is Rs. 150 (ATC - AVC).
Answer: Option (c) Rs. 150.
- Number of units produced = 10
- Average total cost = Rs. 200
- Fixed cost = Rs. 500
To find out the component of average variable cost in the total cost, we need to calculate the average variable cost first.
Average variable cost (AVC) = Total variable cost / Number of units produced
Total cost = Total fixed cost + Total variable cost
Average total cost (ATC) = Total cost / Number of units produced
Since we know the value of ATC and fixed cost, we can calculate the value of total variable cost.
Total cost = Total fixed cost + Total variable cost
ATC * Number of units produced = Fixed cost + Total variable cost
Rs. 200 * 10 = Rs. 500 + Total variable cost
Total variable cost = Rs. 1500 - Rs. 500
Total variable cost = Rs. 1000
Now, we can calculate the value of AVC.
AVC = Total variable cost / Number of units produced
AVC = Rs. 1000 / 10
AVC = Rs. 100
Therefore, the component of average variable cost in the total cost is Rs. 150 (ATC - AVC).
Answer: Option (c) Rs. 150.
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Community Answer
A firm producers 10 units of a commodity at an average total cost of R...
Well lets solve this step by step.. So lets start Given:- Output =10 units ATC= Rs 200 TFC=Rs 500 AVC=? To find out AVC we should frst find out AFC As we know TFC=AFC* units i.e 500=AFC *10 So,AFC=Rs 50 Also,AFC=ATC- AVC So, AVC =200-50 =Rs 150 Hence, average variable cost is Rs 150...
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A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer?
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A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer?.
A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:a)Rs. 300b)Rs. 200c)Rs. 150d)Rs. 100Correct answer is 'C'. Can you explain this answer?.
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