Question

A firm’s average total cost is Rs. 300 at 5 units of output and Rs. 320 at 6 units of output the marginalcost of producing the 6th unit is:(a) Rs. 20(b) Rs. 120(c) Rs. 320(d) Rs. 420

Answer 1

your marketing goals have been met. Also, you may need to amend your strategy if your external market changes due to a new competitor or new technology, or if your products substantially change.

Answer 2

The answer is Total cost for producing 5 units = 300 x 5 = 1500

Total cost for producing 6 units = 320 x 6 = 1920

Therefore, Marginal cost for producing the 6th unit =

1920-1500 = 420.

This is a mathematical part that is used for the calculation of economics.

At the same time, this also talks about production, and average rate of per unit.

also, the marginal cost involved for the total production is also taken into account.