The Average cost of 5 units is Rs 6 and Average cost of producing 6 units is Rs 5. Calculate the marginal cost of 6th unit
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plz briefly explain again
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Answer:
The marginal cost of 6th unit is
Explanation:
- The marginal cost formula calculates the value of the increase or decrease in the company's total production cost during the period under review if output is increased by one extra unit and is determined by dividing the change in costs by the change in quantity.
- The change in the overall cost of production caused by a change in output, i.e. a change in the quantity of production, is referred to as marginal cost. In summary, when the quantity produced varies by one unit, the overall cost changes. It is defined mathematically as a derivative of the total cost in terms of quantity.
Total cost for producing 5 units = 6 * 5 = 30
Total cost for producing 6 units = 5 * 6 = 30
Therefore, Marginal cost for producing the 6th unit =
30-30 = 0
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. The marginal cost involved for the total production is also taken into account.
Reference Link
- https://brainly.in/question/31106196
- https://brainly.in/question/31567012
- https://brainly.in/question/6249221
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