Question

If the marginal of producing 1 unit of a commodity is 15 and that of producing 2 units is 10 then ,
A) total cost = 25
B) average cost =25
C) variable cost =25
D) none of these

Answer 1

The total cost of production in this case is 25 and hence,the correct answer is option A) or total cost=25.

Explanation:

The marginal cost of production basically refers to the change in total cost of production for each unit of output produced by a firm or company.Total cost of production includes both the fixed and variable costs of production and the total cost of production of the first unit is 15 including both the fixed and variable cost and that of producing second unit is 10 which involves only variable as the fixed cost is already fixed and does not vary with the production.Therefore,the total cost of production of producing 2 units of output is=$(15+10)=25$.

Answer 2

ANSWER:

The total cost of production in this case is 25,Hence the correct option is A) Total cost=25.

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