PRC-3 · Chapter 12 · Question 21 of 69
A bakery produces 50 cakes for a total cost of Rs. 5,000. Producing 51 cakes raises the total cost to Rs. 5,080. What does the Rs. 80 specifically represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Marginal Cost
Explanation
Marginal cost is the additional or extra cost incurred by producing exactly one more unit of output (Rs. 5080 - Rs. 5000 = Rs. 80).
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