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Consider the following data
The Average Variable Cost (AVC) for an output of 4 units will be:-
- a)Rs. 20
- b)Rs. 30
- c)Rs. 25
- d)Rs. 26
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following dataThe Average Variable Cost (AVC) for an outp...
At 0 units of output TC is equalls TFC and TFC is remains constant so TVC at 4 units =TC-TFC TVC = 105-25=80 AVC = TVC/Q AVC = 80/4 = 20 HENCE option A is correct
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Consider the following dataThe Average Variable Cost (AVC) for an outp...
Given Data:
Total Cost (TC) at 0 units of output = ₹25 (this is the Fixed Cost (FC)).
Total Cost (TC) at 4 units of output = ₹105.
Steps to Calculate AVC:
Variable Cost (VC):
VC = TC - FC
Total Cost (TC) at 0 units of output = ₹25 (this is the Fixed Cost (FC)).
Total Cost (TC) at 4 units of output = ₹105.
Steps to Calculate AVC:
Variable Cost (VC):
VC = TC - FC
At 4 units of output:
VC = ₹105 - ₹25 = ₹80
VC = ₹105 - ₹25 = ₹80
Average Variable Cost (AVC):
AVC = VC ÷ Output
AVC = VC ÷ Output
At 4 units of output:
AVC = ₹80 ÷ 4 = ₹20
AVC = ₹80 ÷ 4 = ₹20
The Average Variable Cost (AVC) for an output of 4 units is ₹20.
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Consider the following dataThe Average Variable Cost (AVC) for an output of 4 units will be:-a)Rs. 20b)Rs. 30c)Rs. 25d)Rs. 26Correct answer is option 'A'. Can you explain this answer?
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