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What is the answer?

CPT 798 views 5 replies

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)

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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