If the average total cost are Rs 54, average variable cost is Rs 36 an
| If the average total cost are Rs 54, average variable cost is Rs 36 and quantity produced is 2500 units, find the total fixed costs (in Rs) of the firm?
Right Answer is: C
- Total fixed cost of the firm would be Rs 45000.
- Total fixed cost is calculated by subtracting variable cost from the total cost.
- In the above equation, the total cost is obtained by multiplying the average total cost with the quantity produced. 54*2500 = 135000.
- Total variable cost is calculated as the average variable cost multiplied by the total quantity produced. 36*2500 = 90000.
- Hence total fixed cost would be 135000-9000 = 45000.