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The total cost of production of 10 units is Rs. 200. When production is increased to 20 units its total cost becomes Rs. 600. What will be its marginal cost.
- a)400
- b)40
- c)4
- d)30
Correct answer is option 'B'. Can you explain this answer?
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The total cost of production of 10 units is Rs. 200. When production i...
Given:
Total cost of production of 10 units = Rs. 200
Total cost of production of 20 units = Rs. 600
To find:
Marginal cost
Solution:
We know that marginal cost is the cost of producing one additional unit of a product. So, to find the marginal cost, we need to find the cost of producing the 11th unit.
Let's calculate the cost of producing 1 unit:
Cost of producing 1 unit = (Total cost of production of 10 units - Total cost of production of 0 units)/10
= (200 - 0)/10
= Rs. 20
Now, let's calculate the cost of producing the 11th unit:
Cost of producing 11 units = Total cost of production of 20 units - Total cost of production of 10 units
= 600 - 200
= Rs. 400
Therefore, the marginal cost of producing the 11th unit is Rs. 400 - Rs. 200 = Rs. 200.
Hence, the correct option is (b) 40.
Total cost of production of 10 units = Rs. 200
Total cost of production of 20 units = Rs. 600
To find:
Marginal cost
Solution:
We know that marginal cost is the cost of producing one additional unit of a product. So, to find the marginal cost, we need to find the cost of producing the 11th unit.
Let's calculate the cost of producing 1 unit:
Cost of producing 1 unit = (Total cost of production of 10 units - Total cost of production of 0 units)/10
= (200 - 0)/10
= Rs. 20
Now, let's calculate the cost of producing the 11th unit:
Cost of producing 11 units = Total cost of production of 20 units - Total cost of production of 10 units
= 600 - 200
= Rs. 400
Therefore, the marginal cost of producing the 11th unit is Rs. 400 - Rs. 200 = Rs. 200.
Hence, the correct option is (b) 40.
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Community Answer
The total cost of production of 10 units is Rs. 200. When production i...
According to qestion ,Formula of Marginal Cost is = change in TC / Change in Number of Units OR , ∆TC/∆Q.The difference of Change in Total Cost is 400 . and output is 10 units.{when Q1 = 10 , TC = 200 .and Q2 = 20 ,TC = 600,(given) }.then apply the formula i.e. 400 / 10 .»⟩ 40.so ,that the correct option is ( B ).
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The total cost of production of 10 units is Rs. 200. When production is increased to 20 units its total cost becomes Rs. 600. What will be its marginal cost.a)400b)40c)4d)30Correct answer is option 'B'. Can you explain this answer?
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