Find AFC of 2 units by using the table given
below:
Output 0 1 2
TC 580 690 850
a) 105 b) 135 c) 290 d) 161
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What is the answer?
Replies (5)
290 ...
since it is aked to find the average fixed cost .. assuming that 580 is the average fixed cost ...for 2 units .. then for 1 unit the amount afc+avc =580+110=690 .. variable cost has to be excluded
please correct me .. if i am wrong
AFC is 580 which is not included in your options
for your kind information Fixed Cost is Not variable and then it cannot be said that it is 290 for One unit as per your option C
even i thought afc to be 580...
but the book says ans is 290...
290 s the right ans...
AFC IS 580 FOR 0 UNITS ... BUT FOR 2 UNITS IT IS 580/2 =290 .. AS SIMPLE AS THAT
@ MAYANK DONT MISINTERPRET ME .. I NEVER SAID FIXED COST IS VARIABLE ..... I TOLD FOR ONE UNIT 690 IS TC
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