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A firm’s average fixed cost is Rs. 20 at 6 units of output what will it be at 4 units of output?
- a)Rs. 60
- b)Rs. 30
- c)Rs. 40
- d)Rs. 20
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A firm’s average fixed cost is Rs. 20 at 6 units of output what ...
Average fixed cost per unit is Rs. 20 when 6 units of product produced.
Total fixed cost = 6 X 20 = Rs. 120.
Therefore fixed cost per unit when production is 4 units = 120/4 = Rs.30
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A firm’s average fixed cost is Rs. 20 at 6 units of output what ...
Is a business organization that is owned and operated by a group of people. The goal of a firm is to make a profit by providing goods or services to customers. Firms can take many different forms, such as sole proprietorships, partnerships, corporations, and limited liability companies. Each type of firm has its own advantages and disadvantages. Firms can be small or large, and they can operate in a variety of industries, such as manufacturing, retail, finance, or healthcare. The success of a firm depends on many factors, including the quality of its products or services, the efficiency of its operations, and the effectiveness of its marketing and sales strategies.
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A firm’s average fixed cost is Rs. 20 at 6 units of output what will it be at 4 units of output?a)Rs. 60b)Rs. 30c)Rs. 40d)Rs. 20Correct answer is option 'B'. Can you explain this answer?
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