The average fixed cost at 5 units of output is Rs. 20. Average variable cost at 5 units of output is Rs. 40. Average cost of producing 5 units is:

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Rajeev Malhotra

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Q. The average fixed cost at 5 units of output is Rs. 20. Average variable cost at 5 units of output is Rs. 40. Average cost of producing 5 units is:

(A) Rs. 20
(B) Rs. 40
(C) Rs.56
(D) Rs.60

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✅ Correct Answer: (D) Rs.60

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