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WAEC Economics 2025 Paper

Question : 20

Total: 50

Output(bags of rice)	0	10	20	30	40	50	60
Total cost$	100	200	300	380	440	520	600

The average cost of producing 40 bags of rice is

Solution:

Concept:

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

Explanation:

From the table, the total cost of producing 40 bags of rice is

\$440

Average cost is calculated using the formula:

\text{Average Cost} = \frac{\text{Total Cost}}{\text{Output}}

Substitute the values:

\text{Average Cost} = \frac{440}{40} = \$11

Thus, producing 40 bags of rice costs an average of

\$11

per bag.

Answer:

\$11

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