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A firm has a variable cost of Rs.1000 at 5 units of output. If fixed costs are Rs.400, what will be the average total cost at 5 units of output?



A. Rs.280
B. Rs.60
C. Rs.120
D. Rs.1400

This question is part of Theory Of Production And Cost
Asked by Sweetsalman, Last updated: Jun 23, 2020

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2 Answers

John Adney

John Adney

Answered Oct 04, 2017

Please explain this. I am kind of confused as to how this problem should have been answered

 

John Smith

John Smith

Answered Nov 10, 2016

Rs.280
 

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