Question

The average cost is Rs 20 and it is minimum when 4 units are produced. The marginal cost of producing 4 units is:
1 point
A. Rs 20
B. Rs 80
C. Rs 24
D. Rs 5​

Answer 1

Answer:

The average cost is Rs 20 and it is minimum when 4 units are produced. The marginal cost of producing 4 units is: 1 point.

Answer 2

Given:

Average Cost = Rs. 20

Total number of units = 4

To Find:

Marginal cost of producing 4 units

Solution:

The average cost is at its minimum point when -

Average Cost (AC) = Marginal Cost (MC)

Thus, since its is mentioned that average cost is already lowest during production, thus the marginal cost will also be 20.

Answer: The marginal cost of producing 4 units is Rs.20