$ frac{FC_{100}}{100}+frac{VC_{100}}{100}$ Mary made 100 muffins in her bakery and used the formula above to calculate one of the costs associated with making the muffins. What is Mary calculating?

PROFIT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Total cost
B	Average fixed cost
C	Marginal cost
D	Average total cost

Explanation:

Detailed explanation-1: -To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.

Detailed explanation-2: -Total Fixed Cost TFC:-The total amount of money spends on fixed factors of production is called fixed cost.It can be obtained by subtracting total variable cost from total costTFC = TC-TVCTotal Variable Cost TVC:-The total amount of money spends on variable factors of production is called total variable cost.

Detailed explanation-3: -Average Variable Cost (AVC)= VC/Q Where, VC is the Variable Cost, Q is the quantity of output produced.

Detailed explanation-4: -AFC = Total fixed cost/Output (Q) Similarly, if the factory produces 1, 000 pens, then the cost of a unit will be ₹5/-, and if the total production is 5, 000 pens, then the price will come down to ₹1/-per unit.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

PROFIT