ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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12, 000
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40, 000
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80, 000
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120, 000
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Detailed explanation-1: -Variable costs are the sum of all labor and materials required to produce a unit of your product. Your total variable cost is equal to the variable cost per unit, multiplied by the number of units produced. Your average variable cost is equal to your total variable cost, divided by the number of units produced.
Detailed explanation-2: -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.
Detailed explanation-3: -First, add up all of your production costs. Make sure to be clear about which costs are fixed and which ones are variable. Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.
Detailed explanation-4: -Total fixed cost (TFC) is that cost which does not change with a change in the level of output. Total variable cost (TVC) is that cost which changes as the level of output changes. Total cost (TC) is the sum of total fixed cost and total variable fixed cost.