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WAEC Economics 2024 Paper

Question : 20

Total: 50

\text{600. If the variable cost is \\}

400. the average total cost of one unit of the good is

Solution:

Concept:

Average total cost is the total cost of production divided by the number of units produced.

Explanation:

Total cost = Fixed cost + Variable cost.

Total cost =

\$600 + \$400 = \$1000

Average total cost =

\frac{\text{Total Cost}}{\text{Quantity}} = \frac{\$1000}{100} = \$10

So, each unit costs

\$10

to produce on average.

Answer:

\$10

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