CA Foundation Exam > CA Foundation Questions > The change in total cost due to one unit chan...
Start Learning for Free
The change in total cost due to one unit change in the output is called _______ cost.
- a)Marginal
- b)Average
- c)Average variable
- d)Average fixed
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
The change in total cost due to one unit change in the output is calle...
Marginal cost:
Marginal cost is the change in the total cost of production when one more unit is produced. It is the cost of producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in output.
Formula for marginal cost:
Marginal cost = (Change in total cost) / (Change in output)
Significance of marginal cost:
Marginal cost is an important concept in microeconomics as it helps in making production decisions. It helps the producers to determine the optimal level of production, which will maximize their profits. If the marginal cost of producing one more unit is less than the price at which it can be sold, then the producer should produce more units. If the marginal cost is greater than the price, then the producer should reduce the production level.
Difference between marginal cost and average cost:
Marginal cost is the change in total cost due to one unit change in output, while average cost is the total cost divided by the total output. Average cost is the cost per unit of output. Marginal cost helps in making short-term production decisions, while average cost helps in making long-term production decisions.
Conclusion:
Marginal cost is an important concept in microeconomics as it helps the producers to determine the optimal level of production and maximize their profits. It is the cost of producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in output.
Marginal cost is the change in the total cost of production when one more unit is produced. It is the cost of producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in output.
Formula for marginal cost:
Marginal cost = (Change in total cost) / (Change in output)
Significance of marginal cost:
Marginal cost is an important concept in microeconomics as it helps in making production decisions. It helps the producers to determine the optimal level of production, which will maximize their profits. If the marginal cost of producing one more unit is less than the price at which it can be sold, then the producer should produce more units. If the marginal cost is greater than the price, then the producer should reduce the production level.
Difference between marginal cost and average cost:
Marginal cost is the change in total cost due to one unit change in output, while average cost is the total cost divided by the total output. Average cost is the cost per unit of output. Marginal cost helps in making short-term production decisions, while average cost helps in making long-term production decisions.
Conclusion:
Marginal cost is an important concept in microeconomics as it helps the producers to determine the optimal level of production and maximize their profits. It is the cost of producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in output.
Free Test
FREE
| Start Free Test |
Community Answer
The change in total cost due to one unit change in the output is calle...
According to Marshall's DMU
totalunit+ one extra unit =marginal unit
totalunit+ one extra unit =marginal unit
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer?
Question Description
The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer?.
The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer?.
Solutions for The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The change in total cost due to one unit change in the output is called _______ cost.a)Marginalb)Averagec)Average variabled)Average fixedCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup