If a firm produces 600 units of a commodity in a day and incurs a tota – InterviewSolution

1.

If a firm produces 600 units of a commodity in a day and incurs a total cost of ₹ 30,000. Calculate the Average Cost.

Answer»

Average cost refers to the cost of production per unit cost of a commodity. It is calculated by dividing total cost by total quantity of a commodity.

Hence,

AC = \(\frac{TC}{TQ}\)

= \(\frac{30,000}{600}\) = ₹ 50 per unit

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