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WAEC Economics 2024 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.

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20. The fixed cost of producing 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. $4
  • B. $6
  • C. $8
  • D. $10Correct

Explanation

Average total cost = (Total fixed cost + Total variable cost)/Quantity = ($600 + $400)/100 = $10.

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