Question 40
HardOriginal 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 |
By how much does AFC fall when output rises from 2 to 4 units?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
AFC₂ = 60 ÷ 2 = ₹30; AFC₄ = 60 ÷ 4 = ₹15.
It halves when output doubles: a fall of ₹15.
- Concept
- How AFC falls
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Cost Curves, at your own pace.