Practice

Questions

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CUET

Read the passage carefully and answer the questions based on the passage: Macroeconomic Variables Akriti Manufacturing Company produces flower vases. The cost of production for 100 vase includes rent of rs 10,000, salary for permanent staff of rs 10,000, cost of Labour rs 12,000 and Raw material of rs 18,000. Due to increased demand of vases the company plans to increase production to 200 vases. The variable cost per vase remains rs 300 and the fixed cost does not change. What will be the average variable cost (AVC) for producing 200 vases? 1. 150 2. 300 3. 250 4. 600