If you know that with 8 units of output, the average fixed cost is Rs. 12.50 and the average variable cost is Rs. 81.25, then total cost at this output level is

The correct answer is: A. Rs. 93.75

Average fixed cost (AFC) is the total fixed cost divided by the number of units of output produced. Average variable cost (AVC) is the total variable cost divided by the number of units of output produced. Total cost (TC) is the sum of fixed cost (FC) and variable cost (VC).

We are given that AFC = Rs. 12.50 and AVC = Rs. 81.25. We can calculate total cost as follows:

TC = AFC + AVC = Rs. 12.50 + Rs. 81.25 = Rs. 93.75

Therefore, the correct answer is A. Rs. 93.75.

Option B is incorrect because it is the average variable cost. Option C is incorrect because it is the total fixed cost. Option D is incorrect because it is the total variable cost.