Question 23
MediumOriginal questionA firm's short-run total cost schedule is given.
| Output (units) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|---|
| Total cost (₹) | 60 | 90 | 110 | 126 | 140 | 160 | 192 | 242 |
What is the average cost of producing 5 units?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
AC₅ = TC₅ ÷ 5 = 160 ÷ 5 = ₹32.
Check: AFC₅ = 60 ÷ 5 = 12 and AVC₅ = 100 ÷ 5 = 20; 12 + 20 = 32.
- Concept
- AC from a TC schedule
- Typical timeTypical
- 70 s
- Your timeYours
- —
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