A firm is producing 20 units. At this le...

A firm is producing 20 units. At this level of output, ATC and AVC are respectively equal to `₹ 40` and `₹ 37`. Find out the total fixed cost of the firm.

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The correct Answer is:

`"Tatal Fixed Cost" = ₹ 60`

Given : Units `= 20, ATC = ₹ 40, AVC = ₹ 37`.
We know, `AFC = ATC - AVC`. So, `AFC = ₹ 3`
Also, `TFC = AFC xx "units"`
So, `TFC = ₹ 3 xx 20 = ₹ 60`
Ans. `"Total Fixed Cost" = ₹ 60`

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