A firm producing 7 units of output has an Average Total Cost of ₹ 150 and has to pay ₹ 350 to its fixed factors of production whether it produces or not. How much of the Average Total Cost is made up of Variable Costs?
A. ₹ 200
B. ₹ 50
C. ₹ 300
D. ₹ 100
Answer:D
A firm producing 7 units of output has an Average Total Cost of ₹ 150 and has to pay ₹ 350 to its fixed factors of production whether it produces or not. How much of the Average Total Cost is made up of Variable Costs?
A. ₹ 200 B. ₹ 50 C. ₹ 300 D. ₹ 100