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
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.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Get Updates Brochure
Your Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.
