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Calculate AFC of 3 units form the following data:
Unit 0 1 2 3
Total cost 30 40 50 60
Unit 0 1 2 3
Total cost 30 40 50 60
- a)30
- b)15
- c)10
- d)5
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Calculate AFC of 3 units form the following data:Unit 0 1 2 3T...
Calculation of Average Fixed Cost (AFC) of 3 units:
AFC is the fixed cost per unit of production. It is calculated by dividing the total fixed cost by the number of units produced.
Given data:
Total cost of producing 0 units = 30
Total cost of producing 1 unit = 40
Total cost of producing 2 units = 50
Total cost of producing 3 units = 60
Step 1: Calculate the total fixed cost
Total fixed cost = Cost of producing 0 units = 30
Step 2: Calculate the number of units produced
Number of units produced = 3
Step 3: Calculate the AFC
AFC = Total fixed cost / Number of units produced
AFC = 30 / 3
AFC = 10
Therefore, the AFC of 3 units is 10. Hence, option 'C' is the correct answer.
AFC is the fixed cost per unit of production. It is calculated by dividing the total fixed cost by the number of units produced.
Given data:
Total cost of producing 0 units = 30
Total cost of producing 1 unit = 40
Total cost of producing 2 units = 50
Total cost of producing 3 units = 60
Step 1: Calculate the total fixed cost
Total fixed cost = Cost of producing 0 units = 30
Step 2: Calculate the number of units produced
Number of units produced = 3
Step 3: Calculate the AFC
AFC = Total fixed cost / Number of units produced
AFC = 30 / 3
AFC = 10
Therefore, the AFC of 3 units is 10. Hence, option 'C' is the correct answer.
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Community Answer
Calculate AFC of 3 units form the following data:Unit 0 1 2 3T...
At 0 units of production total cost = fixed cost.
AFC at 3 units =30/3=10
AFC at 3 units =30/3=10
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Calculate AFC of 3 units form the following data:Unit 0 1 2 3Total cost 30 40 50 60a)30b)15c)10d)5Correct answer is option 'C'. Can you explain this answer?
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