A firm produces 5 units of output at average fixed cost of ₹ 4 per unit. For production of 10 units of output average cost is ₹ 7 per unit. Average…

CA Foundation · Business Economics · PYQS · September 2024
A firm produces 5 units of output at average fixed cost of ₹ 4 per unit. For production of 10 units of output average cost is ₹ 7 per unit. Average variable cost for producing 10 units of output is :
(A) A. ₹ 5
(B) B. ₹ 4
(C) C. ₹ 6
(D) D. ₹ 10

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹ 6

Topics: Theory of Production and Cost

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