Question 28
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 |
At what output is average cost lowest?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
AC: 90, 55, 42, 35, 32, 32, 34.57.
The lowest is ₹32 at 5 and 6 units; the MC of the 6th unit is also ₹32.
- Concept
- Minimum AC
- Typical timeTypical
- 70 s
- Your timeYours
- —
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