Question 42
Theory of Costs and RevenueGiven the cost function C = 160 + 36Q, what is the average cost at 20 units of output?
- A.₦720.00
- B.₦216.00
- C.₦44.00
- D.₦880.00
Show the answer and explanation
Answer: C (₦44.00)
Explanation
Total cost = 160 + 36 × 20 = ₦880. Average cost = 880 ÷ 20 = ₦44.