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A firm’s total cost is Rs. 200 at 5 units of output and Rs. 220 at 6 units of output. The marginal cost of producing 6th of output will be ______.
  • a)
    20
  • b)
    120
  • c)
    220
  • d)
    320
Correct answer is option 'A'. Can you explain this answer?
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A firm’s total cost is Rs. 200 at 5 units of output and Rs. 220 ...
Is a business entity that engages in commercial activities with the aim of earning profits. It can refer to a sole proprietorship, partnership, corporation, or other legal entity that sells goods or services. Firms can operate in various industries, including manufacturing, finance, healthcare, retail, and technology. The primary objective of a firm is to generate revenue and maximize profits for its owners or shareholders. To achieve this, firms may employ various strategies, such as cost-cutting, innovation, marketing, and expansion into new markets or product lines.
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A firm’s total cost is Rs. 200 at 5 units of output and Rs. 220 ...
Marginal cost is the additional cost incurred to produce 1 extra unit of output So the formula is total cost of producing 6 units-total cost of producing 5 units And hence 220-200=20
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A firm’s total cost is Rs. 200 at 5 units of output and Rs. 220 at 6 units of output. The marginal cost of producing 6th of output will be ______.a)20b)120c)220d)320Correct answer is option 'A'. Can you explain this answer?
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