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.
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