Question 30
MediumOriginal questionA 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 |
What is the marginal cost of the 6th unit?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
MC₆ = TC₆ − TC₅ = 192 − 160 = ₹32.
This equals AC at 6 units (192 ÷ 6 = 32): MC meets AC at its minimum.
Worth noting
₹22 is AVC at 6 units; ₹10 is AFC.
- Concept
- MC at the minimum of AC
- Typical timeTypical
- 70 s
- Your timeYours
- —
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