Question

When the total fixed cost of producing 100 units is Rs 30and the average variable cost Rs 3, total cost is : (Choose the correct alternative)

(a) Rs 3

(b) Rs 30

(c) Rs 270

(d) Rs 330

Answer 1

Rs 330

TC = TFC + TVC
TC = 30 + AVC×Q
TC = 30 + 3×100
TC = Rs 330