Question 36
MediumOriginal questionA firm sells at a market price of ₹20 a unit. Its total cost schedule is:
| Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Total cost (₹) | 20 | 35 | 45 | 57 | 77 | 103 | 135 |
What is the marginal cost of the 4th unit?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
MC₄ = TC₄ − TC₃ = 77 − 57 = ₹20.
Worth noting
₹19.25 is AC at 4 units (77 ÷ 4).
- Concept
- MC from the schedule
- Typical timeTypical
- 70 s
- Your timeYours
- —
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