Consider the details of 3 firms. If the price of the product is Rs.48, find the output that has to be produced to make a profit of Rs.84,000/- A B C Total Fixed Cost(TFC) 11200 16000 21600 Average Variable cost(AVC) 20 16 12

Consider the details of 3 firms. If the price of the product is Rs.48, find the output that has to be produced to make a profit of Rs.84,000/- A B C Total Fixed Cost(TFC) 11200 16000 21600 Average Variable cost(AVC) 20 16 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the details of 3 firms. If the price of the product is Rs.48, find the output that has to be produced to make a profit of Rs.84,000/-

	A	B	C
Total Fixed Cost(TFC)	11200	16000	21600
Average Variable cost(AVC)	20	16	12

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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