What is the Average Variable Cost (AVC) when the quantity produced is 100 units, the total cost is ₹1,000, and the fixed cost is 200?

CA Foundation · Business Economics · PYQS · September 2025
What is the Average Variable Cost (AVC) when the quantity produced is 100 units, the total cost is ₹1,000, and the fixed cost is 200?
(A) A. ₹ 5
(B) B. ₹ 8
(C) C. 10
(D) D. 12

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. ₹ 8

Topics: Theory of Production and Cost

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