Question : If the average total cost is Rs. 54, the total fixed cost is Rs. 45,000 and the quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm.
Option 1: 24
Option 2: 18
Option 3: 36
Option 4: 60
New: SSC CHSL Tier 2 answer key released | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: 36
Solution : The correct option is 36.
The formula is Average Variable Cost(AVC) = Average Total Cost(ATC)− Average Fixed Cost(AFC).
Given that the Average Total Cost (ATC) is Rs. 54, and the Average Fixed Cost (AFC) is calculated as Total Fixed Cost divided by the Quantity Produced:
AFC = Total Fixed Cost / Quantity Produced; AFC = 45000 / 2500 = 18.
Substitute these values into the formula for Average Variable Cost: 54 − 18 = 36.
Candidates can download this e-book to give a boost to thier preparation.
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Question : "Marginal cost" equals:
Question : If the fixed cost of the factory producing candles is Rs. 20,000 the selling price is Rs. 30 per dozen candles and the variable cost is Rs. 1.5 per candle, what is the break-even quantity?
Question : If the fixed cost of the factory producing candles is Rs. 20,000, the selling price is Rs. 30 per dozen candles, and the variable cost is Rs. 1.50 per candle, what is the Break-even Quantity?
Question : Which of the following cost curve is never 'U' shaped?
Question : If the price of an article decreases from Rs. 80 to Rs. 60, the quantity demanded increases from 600 to 750 units. Find the point elasticity of demand.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile