Multiple choice

The output and cost pattern of a product are given. Output(q) $0$ $1$ $2$ $3$ $4$ $5$ Total in Rs. cost(Tc) $30$ $42$ $53$ $63$ $75$ $88$ The average fixed cost of producing $3$ units is __________.

  1. Rs. $17.5$
  2. Rs. $15$
  3. Rs. $10$
  4. Rs. $14$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total cost is fixed cost plus variable cost. At output 0, total cost is 30, so fixed cost is 30. The average fixed cost is fixed cost divided by quantity. For 3 units, AFC = 30/3 = 10.

AI explanation

Total fixed cost is the cost at zero output, which from the table is Rs. 30. Average fixed cost is calculated by dividing the total fixed cost by the number of units produced. For 3 units, the calculation is 30 divided by 3, resulting in an average fixed cost of Rs. 10.

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