CAT Quantitative Ability Questions | CAT Percentage, Profit & Loss questions
A : The average cost increases consistentlyB : The average cost decreases consistentlyC : The average cost decreases till minimum then increasesD : The average cost increases till maximum then decreases
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Method of solving this CAT Quantitative Ability Question from Percentage, Profit & Loss question
(c) From the graph and earlier question it can be inferred that the average cost per unit reduces till no. of units = 30. Thereafter it increase with the no. of units because the production moves into the 2nd shift and hence the additional fixed cost becomes Rs 1200.