Question 62
HardOriginal questionA firm's total cost for 0 to 7 units is ₹60, 90, 110, 126, 140, 160, 192 and 242. Match each output with a correct fact.
| List I | List II |
|---|---|
| A. 4 units | I. MC is above AC, so AC rises |
| B. 5 units | II. MC = AC = ₹32 |
| C. 6 units | III. MC = AVC = ₹20 |
| D. 7 units | IV. MC is at its lowest (₹14) |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
MC: 14 at the 4th unit (lowest), 20 at the 5th (= AVC), 32 at the 6th (= AC).
At the 7th unit MC = ₹50 > AC, so AC rises from 32 to 34.57.
- Concept
- Reading the schedule
- Typical timeTypical
- 120 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Cost Curves, at your own pace.