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?

  • A N400.00
  • B N80.00
  • C N40.00
  • D N20.00
jamb 2000economics

The correct answer is C. N40.00

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

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