PRC-3 · Chapter 12 · Question 34 of 69
A car factory produces 100 cars for a total cost of Rs. 10 million. Producing 101 cars raises the total cost to Rs. 10.15 million. What does the extra Rs. 150,000 represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Marginal Cost
Explanation
Marginal cost is defined as the extra or additional cost incurred by producing exactly one more unit of output.
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