Question

If the total cost of producing 5 units of a commodity is Rs20 and that producing 4 units is Rs15 what will be the marginl cost​

Answer 1

Explanation:

Output

(Units) TC

(RS.)  AFC

  (Rs.)   TFC  

 (Rs.) TVC  

 (Rs.)  AVC

(Rs.)MC

(Rs.)123   18  1823−18=5  15=5  5227    9 1827−18=9  29=4.5  4330    6 1830−18=12  312=4  3

Answer 2

The marginal cost is Rs. 5

Given:

Units - 5 Cost - Rs. 20

Units - 4 Cost - Rs. 15

To find:

Marginal Cost

Solution:

Units - 5 Cost - Rs. 20

Units - 4 Cost - Rs. 15

The change in the cost while producing more units of the product is known as the Marginal Cost.

The formula for marginal cost is :

$Marginal \: Cost = \frac{change \: in \: cost \: }{change \: in \: quantiy}$

finding,

$change \: in \: cost \: = 20 - 15$

$change \: in \: cost \: = 5$

and,

$change \: in \: quantity = 5 - 4$

$change \: in \: quantity = 1$

Adding the values:

$Marginal \: Cost = \frac{5}{1}$

$Marginal \: Cost = 5$

Therefore, the marginal cost will be Rs. 5.