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
What is the answer?
ambyi (..) (123 Points)
20 May 2011
mridul savio Pinto
(articled trainee )
(1477 Points)
Replied 20 May 2011
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
(CA)
(919 Points)
Replied 20 May 2011
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)
Replied 20 May 2011
even i thought afc to be 580...
but the book says ans is 290...
mridul savio Pinto
(articled trainee )
(1477 Points)
Replied 20 May 2011