Economy, asked by kunalagrawal10000, 9 months ago

If a firm's production department data say that the AVC for producing 8 units
and 10 units of output is $300 and 320 respectively, MC of 10th unit will be
(a) 400
(b) 500
(c) 300
(d) 250​

Answers

Answered by amitnrw
2

Given : a firm's production  department data says that TVC  for producing 8 units and 10  units of output is 2500 and    3000 respectively,

To Find :   MC (marginal  cost) of 10th unit will be:

(a) 400

(b) 500

(c) 300

(d) 250​

Solution:

TVC = Total Variable cost

TVC  for producing 8 units  =  2500

TVC  for producing 10 units  =  3000

=>  TVC  for producing 10-8  units   = 3000 - 2500

=>  TVC  for producing 2 units = 500

=> TVC  for producing  1 units = 500/2

=>  TVC  for producing  1 units =  250

Variable cost of  one additional unit of production is called marginal

cost = 250

marginal  cost  is per unit variable cost. = 250

Hence marginal  cost of 10th unit will be: 250

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Answered by xXMarziyaXx
1

Given :

a firm's production  department data says that TVC  for producing 8 units and 10  units of output is 2500 and    3000 respectively,

To Find :

  MC (marginal  cost) of 10th unit will be:

(a) 400

(b) 500

(c) 300

(d) 250

Solution:

TVC = Total Variable cost

TVC  for producing 8 units  =  2500

TVC  for producing 10 units  =  3000

=>  TVC  for producing 10-8  units   = 3000 - 2500

=>  TVC  for producing 2 units = 500

=> TVC  for producing  1 units = 500/2

=>  TVC  for producing  1 units =  250

Variable cost of  one additional unit of production is called marginal

cost = 250

marginal  cost  is per unit variable cost. = 250

Hence marginal  cost of 10th unit will be: 250

Hope it helps ❤︎

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