Answer :

Average fixed cost is 60

Quantity is 4

Total fixed cost = AFC * Quantity

TFC = 60 * 4 = 120

Now, TFC is 120.


Variable cost is the cost incurred on the variable factors of production. It varies directly with the increase in production. It is zero when the output is zero. It is also called prime cost and direct cost. The two examples of variable cost of raw material and the labour employed in the production.

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