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What is the answer?

CPT 754 views 5 replies

ambyi

123 Points Joined June 2010

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

Replies (5)

mridul savio Pinto

articled trainee

1477 Points Joined July 2010

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

Mayank Kothari

919 Points Joined June 2009

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

ambyi

123 Points Joined June 2010

even i thought afc to be 580...

but the book says ans is 290...

ambyi

123 Points Joined June 2010

290 s the right ans...

mridul savio Pinto

articled trainee

1477 Points Joined July 2010

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