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
Ask EduPadi AI for a detailed answer
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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