Q321
A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?
A.
Rs.60
B.
Rs.30
AnswerC.
Rs.40
D.
Rs.20
Answer: Option B
Solution
Answer: Option B
Solution:
Average fixed cost per unit is Rs. 20 when 6 units of product produced.
Total fixed cost = 6 X 20 = Rs. 120.
Therefore fixed cost per unit when production is 4 units = 120/4 = Rs.30