PRC-3 · Chapter 12 · Question 9 of 69
The total cost for a toy factory to produce 100 toys is Rs. 1,000. The total cost to produce 101 toys is Rs. 1,015. What does the Rs. 15 represent in economic terminology?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Marginal Cost
Explanation
Marginal cost is the additional cost incurred by producing one additional unit of output (Rs. 1015 - Rs. 1000 = Rs. 15).
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