NECO Economics 2024 Objective — Question 20
Question 20 of 50 from the National Examinations Council (NECO) Economics 2024 Objective paper, with the correct answer and a full explanation.
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The fixed 100 units of a good is $600. If the variable cost is $400, the average total cost of one unit of the good is
- A. A. $4
- B. B. $6
- C. C. $8
- D. D. $10Correct
Explanation
Given: Fixed cost (FC)=$600, Variable cost (VC)=$400, Output (Q)=100 units. Total cost TC=FC+VC=$600+$400=$1000. ATC=TC/Q=$1000/100=$10.00.
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