Accountancy, asked by Anonymous, 11 months ago

when output increase from 40 unit to 55 unit TC appears from 25,000 to 3250 Calculate Mc!!

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Answers

Answered by sonalip1219
8

MC (Marginal Cost) amounts to 500

Explanation:

MC stands for or termed as the Marginal cost, which is computed or evaluated the change (denoted as Δ)  in the aggregate cost (TC)  by dividing the change in the quantity (Q).

The formula for computing the MC as:

Marginal Cost (MC) = Δ TC / ΔQ

where

Δ TC is Change in Total Cost which is

ΔTC = 32,500 - 25,000

ΔTC = 7,500

ΔQ is Change in Quantity which is

ΔQ = 55 - 40

ΔQ = 15

Putting the values above:

Marginal Cost = 7,500 / 15

Marginal Cost = 500

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