#
The average fixed cost at 4 units of output is Rs20. Average variable cost at 5 units of output is Rs40. Average cost of producing 5 units is
- Rs 20
- Rs40
- Rs 56
- Rs 60

Fixed cost does not change with change in output . Average fixed cost for 4 units of output = Rs. 20 . So total fixed cost = Rs. 20 multiplied by 4 , that is , Rs. 80 . So average fixed cost at 5 units = Rs. 80 divided by 5 , that is , Rs. 16 . Then comes the question of average variable cost . Here it is Rs. 40 for 5 units .

To calculate average cost of producing 5 units :

Average cost = Average fixed cost + Average variable cost

or, Average cost of producing 5 units = Rs. 16 + Rs. 40 = Rs. 56 .

Regards .

**
**