Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions RYM5E2AB5G
Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Study the table below and answer the question.

Output TFC     TVC     TC    
0 20 0 20
1 20 10 30
2 20 18 38
3 20 24 44
4 20 29 49
5 20 33 53
6 20 39 59

What will be the short run average cost (SAC) at three units of output?

Options:

30

19

14.67

12.25

Correct Answer:

14.67

Explanation:

The correct answer is option 3: 14.67

SAC= TC/q

TC at 3 units= 44

SAC= 44/3 =14.67

Output TFC     TVC     TC      AFC   
AVC 
SAC  
SMC   
0 20 0 20 - - - -
1 20 10 30 20 10 30 10
2 20 18 38 10 9 19 8
3 20 24 44 6.67 8 14.67 6
4 20 29 49 5 7.25 12.25 5
5 20 33 53 4 6.6 10.6 4
6 20 39 59 3.33 6.5 9.83 6

CUET Questions