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A firm’s average fixed cost is Rs. 40 at 12 units. What will be the average fixed cost at 8 units:
- a)Rs. 60
- b)Rs. 70
- c)Rs. 90
- d)Rs. 80
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A firm’s average fixed cost is Rs. 40 at 12 units. What will be ...
Calculating Average Fixed Cost at 8 units
- Given that the average fixed cost at 12 units is Rs. 40.
- To find the average fixed cost at 8 units, we can use the concept of fixed costs being spread over a larger or smaller number of units produced.
Calculation
- Let's assume the total fixed cost at 12 units is Rs. 480 (40 * 12).
- To find the average fixed cost at 8 units, we divide the total fixed cost by the new number of units.
- Average fixed cost at 8 units = Total fixed cost / Number of units = Rs. 480 / 8 = Rs. 60.
Therefore, the average fixed cost at 8 units is Rs. 60. So, the correct answer is option A: Rs. 60.
- Given that the average fixed cost at 12 units is Rs. 40.
- To find the average fixed cost at 8 units, we can use the concept of fixed costs being spread over a larger or smaller number of units produced.
Calculation
- Let's assume the total fixed cost at 12 units is Rs. 480 (40 * 12).
- To find the average fixed cost at 8 units, we divide the total fixed cost by the new number of units.
- Average fixed cost at 8 units = Total fixed cost / Number of units = Rs. 480 / 8 = Rs. 60.
Therefore, the average fixed cost at 8 units is Rs. 60. So, the correct answer is option A: Rs. 60.
Most Upvoted Answer
A firm’s average fixed cost is Rs. 40 at 12 units. What will be ...
Is a business entity that engages in commercial, industrial, or professional activities with the aim of making a profit. It may be a sole proprietorship, partnership, corporation, or other type of organization. Firms may produce and sell goods or services, and may operate in various sectors such as manufacturing, finance, healthcare, and technology. The success of a firm is often measured by its profitability, market share, and overall performance.
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A firm’s average fixed cost is Rs. 40 at 12 units. What will be ...
Well as it is given in the question AFC at 12 units=Rs 40 nd we hve to find out AFC at 8 units... For this frst we hve to find out TFC... TFC =AFC *output =40*12=Rs 480..nd as we know that TFC remains same at levels of units... So AFC at 8 units =TFC/output =480/8=Rs 60...hence AFC at 8 units = Rs 60
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A firm’s average fixed cost is Rs. 40 at 12 units. What will be the average fixed cost at 8 units:a)Rs. 60b)Rs. 70c)Rs. 90d)Rs. 80Correct answer is option 'A'. Can you explain this answer?
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