The average total cost pf producing 50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units?

The correct answer is: D. Rs.5

Average fixed cost (AFC) is the fixed cost per unit of output. It is calculated by dividing the total fixed cost (TFC) by the number of units produced (Q). In this case, the TFC is Rs.1000 and the Q is 50, so the AFC is Rs.20.

If the number of units produced is increased to 100, the AFC will decrease to Rs.10. This is because the fixed cost is spread over a larger number of units, so the cost per unit decreases.

The other options are incorrect because they do not represent the correct value of the average fixed cost.