CA Foundation P4 · Chapter 3 · Question 10 of 15
Total cost of producing 10 units is Rs. 1,250 and of producing 11 units is Rs. 1,320. The marginal cost of the 11th unit is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 70
Explanation
MC of the nth unit = TCn - TCn-1 = 1,320 - 1,250 = Rs. 70. Rs. 120 is the average cost at 11 units (1,320/11) and Rs. 125 is the average cost at 10 units.
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