BUISENESS MANAGEMENT
BUSINESS PLANNING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
$4 per unit
|
|
|
$5 per unit
|
|
|
$3 per unit
|
|
|
$2 per unit
|
Detailed explanation-1: -Average cost (AC), also known as average total cost (ATC), is the average cost per unit of output. To find it, divide the total cost (TC) by the quantity the firm is producing (Q).
Detailed explanation-2: -Average cost = Total cost of the units/Number of units The formula to calculate the average cost is given here.
Detailed explanation-3: -The average variable cost of four units is the $40 variable cost–total variable cost–divided by the four units we produced, so it’s going to be $10. The average total cost of one unit is $20. If one unit costs a total of $20, then, on average, that one unit costs $20.
Detailed explanation-4: -What is the total cost of production of 20 units, if fixed cost is Rs. 5, 000 and variable cost is Rs. 2/-? a)5400b)5040c)4960d)5020Correct answer is option ‘B’.