A frim has variable cost of Rs.1000 at 5 units of output. If fixed costs are Rs.

Question

A frim has 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?

Options:

A . 380

B . 280

C . 60

D . 400

Answer: Option B

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