PRC-3 · Chapter 12 · Question 45 of 69
If a user can download 10 digital ringtones for Rs. 10 total, but downloading 11 ringtones costs Rs. 10.50 total, what is the precise marginal cost of the 11th ringtone?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 0.50
Explanation
Marginal cost is the difference in total cost when quantity increases by one (Rs. 10.50 - Rs. 10.00 = Rs. 0.50).
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