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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
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be th...
AFC IS EQUAL AT ANY UNIT
SO AFC OF 20th UNIT=20
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Average Fixed Cost = Rs. 20Quantity Produced = 10 unitsWhat will be th...
- Calculate Average Fixed Cost for 10 units:
- Given, Average Fixed Cost = Rs. 20
- Quantity Produced = 10 units
- Formula for Average Fixed Cost = Total Fixed Cost / Quantity Produced
- Therefore, Total Fixed Cost = Average Fixed Cost * Quantity Produced
- Total Fixed Cost = Rs. 20 * 10 = Rs. 200
- So, Average Fixed Cost for 10 units = Rs. 200 / 10 = Rs. 20
- Calculate Average Fixed Cost for 20 units:
- Given, Quantity Produced = 20 units
- Formula for Average Fixed Cost = Total Fixed Cost / Quantity Produced
- Since Total Fixed Cost is Rs. 200 for 10 units, it will remain the same for 20 units as fixed costs do not change with the level of production
- Therefore, Average Fixed Cost for 20 units = Rs. 200 / 20 = Rs. 10
Therefore, the Average Fixed Cost for the 20th unit will be Rs. 10.
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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 'B'. Can you explain this answer?
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