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Cost Curves · Question 25 of 62

At what output is marginal cost lowest?

Question 25

MediumOriginal question

A firm's short-run total cost schedule is given.

Output (units)	0	1	2	3	4	5	6	7
Total cost (₹)	60	90	110	126	140	160	192	242

At what output is marginal cost lowest?

5 units, where MC is ₹20Correct answerYour answer1 unit, where MC is ₹30Correct answerYour answer7 units, where MC is ₹50Correct answerYour answer4 units, where MC is ₹14Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

MC: 30, 20, 16, 14, 20, 32, 50 for units 1 to 7.
The lowest is ₹14, for the 4th unit; after that MC rises.

Concept: Minimum MC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAverage and marginal cost

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