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A firm's average fixed cost is Rs 20 at 6 units...

This question belongs to Commerce Economics
Economics
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A firm's average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output?

Answer & Solution
Correct Answer: Option B
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
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Payal Manna
Payal Manna 8 years ago
Explain please
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