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A forms AFC is Rs. 200 at 10 units of output what will be it at 20 units of output?
- a)500
- b)100
- c)150
- d)200
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
A forms AFC is Rs. 200 at 10 units of output what will be it at 20 uni...
Calculation:
- AFC = Total Fixed Costs / Units of Output
- AFC at 10 units of output = Rs. 200 / 10 = Rs. 20
- AFC at 20 units of output = Rs. 200 / 20 = Rs. 10
Explanation:
- AFC stands for Average Fixed Cost, which is the fixed cost per unit of output.
- In this case, the AFC is given as Rs. 200 at 10 units of output, which means that the total fixed cost is Rs. 200 and the number of units produced is 10.
- To calculate the AFC at 20 units of output, we need to divide the total fixed cost by the number of units produced, which gives us Rs. 200 / 20 = Rs. 10.
- Therefore, the correct answer is option B, which states that the AFC at 20 units of output is Rs. 10.
Conclusion:
- It is important to understand the concept of average fixed cost in order to solve this problem.
- By using the formula for AFC, we can easily calculate the fixed cost per unit of output at different levels of production.
- In this case, the AFC decreases as the number of units produced increases, which is a common trend in most production processes.
- AFC = Total Fixed Costs / Units of Output
- AFC at 10 units of output = Rs. 200 / 10 = Rs. 20
- AFC at 20 units of output = Rs. 200 / 20 = Rs. 10
Explanation:
- AFC stands for Average Fixed Cost, which is the fixed cost per unit of output.
- In this case, the AFC is given as Rs. 200 at 10 units of output, which means that the total fixed cost is Rs. 200 and the number of units produced is 10.
- To calculate the AFC at 20 units of output, we need to divide the total fixed cost by the number of units produced, which gives us Rs. 200 / 20 = Rs. 10.
- Therefore, the correct answer is option B, which states that the AFC at 20 units of output is Rs. 10.
Conclusion:
- It is important to understand the concept of average fixed cost in order to solve this problem.
- By using the formula for AFC, we can easily calculate the fixed cost per unit of output at different levels of production.
- In this case, the AFC decreases as the number of units produced increases, which is a common trend in most production processes.
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Community Answer
A forms AFC is Rs. 200 at 10 units of output what will be it at 20 uni...
200 × 10 ÷ 20 = 100
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A forms AFC is Rs. 200 at 10 units of output what will be it at 20 units of output?a)500b)100c)150d)200Correct answer is option 'B'. Can you explain this answer?
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