alleryStart learning →Average fixed cost is calculated as which ratio?
ATVC divided by q
BTC divided by q
CTFC divided by q
DMC divided by q
Answer & Solution
Correct answer: C. TFC divided by q
Dividing total fixed cost by the quantity gives fixed cost per unit.
Keep practising Production And Cost
Browse all Production And Cost questions for CA Foundation, or explore more Business Economics topics.
Related questions
The marginal cost curve always passes through the minimum points of which two curves?What is the typical shape of the average variable cost curve?Machines and land bought for a factory are generally classed as which cost in the short ruA mill pays a monthly lease whatever it produces. Over the lease period, this payment is wFixed cost is 500. Producing 5 units costs 700 in total and 6 units costs 760. What is theA firm has TFC of 900 and AVC of 15 at 60 units. What is its total cost?At 40 units, TFC is 1,200 and TVC is 800. What is AC at 40 units?TVC is 600 for 50 units. What is the average variable cost?