JAMB - Economics (2000 - No. 10)
In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?
N400.00
N80.00
N40.00
N20.00
Explication
The unit cost of production is gotten by dividing the total cost by the output.
Hence we have;
\(\frac{15,000 + 5,000}{500}\) = \(\frac{20,000}{500}\) = 40