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Average Fixed Cost = Rs. 20
Quantity Produced = 10 units
What will be the Average Fixed Cost of 20th unit?
Quantity Produced = 10 units
What will be the Average Fixed Cost of 20th unit?
- a)Rs. 10
- b)Rs. 20
- c)Rs. 5
- d)None
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be th...
The average fixed cost is the total fixed cost divided by the number of units produced. Hence, if TFC is the total fixed cost and Q is the number of units produced, then 
Therefore, AFC is the fixed cost per unit of output.
AFC =Rs 20
Q = 10 Units
TFC = AFC x Q
= 20 x 10
= 200
So for 20 units AFC will be, = TFC / Q = 200 / 10
AFC = Rs 20
This question is part of UPSC exam. View all CA Foundation courses
Most Upvoted Answer
Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be th...
Calculation of Average Fixed Cost for 10 units
The given information states that the Average Fixed Cost for a certain number of units produced is Rs. 20. Hence, for 10 units produced, the Average Fixed Cost can be calculated as follows:
Average Fixed Cost = Total Fixed Cost / Quantity Produced
Rs. 20 = Total Fixed Cost / 10 units
Total Fixed Cost = Rs. 20 x 10 units
Total Fixed Cost = Rs. 200
Calculation of Average Fixed Cost for 20 units
To calculate the Average Fixed Cost for 20 units, we need to consider the additional cost incurred in producing the additional 10 units. However, the fixed cost remains the same as it is not affected by the number of units produced.
Hence, the Average Fixed Cost for 20 units can be calculated as follows:
Average Fixed Cost = Total Fixed Cost / Quantity Produced
Total Fixed Cost = Rs. 200 (as calculated above)
Quantity Produced = 20 units
Average Fixed Cost = Rs. 200 / 20 units
Average Fixed Cost = Rs. 10
Therefore, the correct answer is option A, Rs. 10.
The given information states that the Average Fixed Cost for a certain number of units produced is Rs. 20. Hence, for 10 units produced, the Average Fixed Cost can be calculated as follows:
Average Fixed Cost = Total Fixed Cost / Quantity Produced
Rs. 20 = Total Fixed Cost / 10 units
Total Fixed Cost = Rs. 20 x 10 units
Total Fixed Cost = Rs. 200
Calculation of Average Fixed Cost for 20 units
To calculate the Average Fixed Cost for 20 units, we need to consider the additional cost incurred in producing the additional 10 units. However, the fixed cost remains the same as it is not affected by the number of units produced.
Hence, the Average Fixed Cost for 20 units can be calculated as follows:
Average Fixed Cost = Total Fixed Cost / Quantity Produced
Total Fixed Cost = Rs. 200 (as calculated above)
Quantity Produced = 20 units
Average Fixed Cost = Rs. 200 / 20 units
Average Fixed Cost = Rs. 10
Therefore, the correct answer is option A, Rs. 10.
Community Answer
Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be th...
AFC =TFc/tu
where, Afc = RS 20 TU=10 Units
TfC=20*10= 200 (cross multi fication)
afc = tfc /tu
200/20= 10 ans
where, Afc = RS 20 TU=10 Units
TfC=20*10= 200 (cross multi fication)
afc = tfc /tu
200/20= 10 ans
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Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be the Average Fixed Cost of 20thunit?a)Rs. 10b)Rs. 20c)Rs. 5d)NoneCorrect answer is option 'A'. Can you explain this answer?
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