The cost of a firm has increased from Rs. 67 to Rs. 80 when the units of cotton production rose from 8 to 9. Calculate the marginal cost of a firm?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 13
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Change in Total Cost = Rs. 80 − Rs. 67 = Rs. 13
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Change in Output = 9 − 8 = 1 unit
Marginal Cost=Δ Total Cost/ Δ Output = 13/ 1 = 13