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Standard VII

Mathematics

Understanding Cost per Unit in Every Day Life Situation

A firm's aver...

Question

A firm's average total cost is Rs $300$ at $5$ units of output and Rs $320$ at $6$ units of output. The marginal cost of producing the $6$ th unit is ______.

20

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120

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320

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420

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Solution

The correct option is D Rs $420$
$T C = A C \times Q$
So we have;
$300 \times 5 = 1500$
$320 \times 6 = 1920$
Thus, $M C = {T C}_{n} - {T C}_{(} n - 1)$
$M C = 1920 - 1500 = 420$
Thus, Marginal cost of producing $6 t h$ unit is $R s .420$ .

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1	10	10.00	10
2	19	9.50	?
3	?	?	8
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Marginal cost at

6^{t h}

unit = ________.

Q. A firm's average fixed cost is Rs

20

6

units of output. What will be at

4

units of output?

If a firm’s production department data says that the total variable cost for producing 8 units and 10 units of output is 2,500 and 3,000 respectively, marginal cost of 10 th unit will be

a. Rs 100

b. Rs 150

c. Rs 500

d. Rs 250

Q. What should the firm's profit, when average variable cost is

R s . 20

per unit, average fixed cost is

R s . 10

per unit, price of the output is

R s . 25

per unit and only

8

units of the output are produced?

A firm is operating with a Total Variable Cost of Rs 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs 200, what will be the Average Total Cost of producing 5 units of output?
i) Rs 140 ii) Rs 100 iii) Rs 120 iv) Rs 300

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A firm's average total cost is Rs300 at 5 units of output and Rs320 at 6 units of output. The marginal cost of producing the 6th unit is ______.

The correct option is D Rs420TC=AC×QSo we have;300×5=1500320×6=1920 Thus, MC=TCn−TC(n−1)MC=1920−1500=420Thus, Marginal cost of producing 6th unit is Rs.420.

A firm's average total cost is Rs $300$ at $5$ units of output and Rs $320$ at $6$ units of output. The marginal cost of producing the $6$ th unit is ______.

The correct option is D Rs $420$
$T C = A C \times Q$
So we have;
$300 \times 5 = 1500$
$320 \times 6 = 1920$
Thus, $M C = {T C}_{n} - {T C}_{(} n - 1)$
$M C = 1920 - 1500 = 420$
Thus, Marginal cost of producing $6 t h$ unit is $R s .420$ .