Question on: JAMB Economics - 2014
Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.
A
N30
B
N40
C
N10
D
N20
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Correct Option: B
Here's how to calculate the average cost:
1. **Calculate Total Cost (TC):**
* TC = FC + VC
* TC = N500 + N1,500 = N2,000
2. **Calculate Average Cost (AC):**
* AC = TC / Q
* AC = N2,000 / 50 = N40
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