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Answer to Question #85125 in Microeconomics for Ayanda Lubisi
Question #85125
A firm producing five units of output has an average total cost of R100 and has to pay
R150 to its fixed factors of production. The average variable cost is …
1. R30
2. R70
3. R100
4. R150
R150 to its fixed factors of production. The average variable cost is …
1. R30
2. R70
3. R100
4. R150
Expert's answer
Fixed cost per unit of output:150/5 = R 30
Variable cost per unit of output: ttl cost- fixed cost =100-30 = R 70
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