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 ______.

A
Rs20
B
Rs120
C
Rs320
D
Rs420

Solution

## The correct option is D Rs$$420$$$$TC=AC\times Q$$So we have;$$300\times 5=1500$$$$320\times 6=1920$$  Thus, $$MC= {TC}_n - {TC}_(n-1)$$$$MC= 1920-1500=420$$Thus, Marginal cost of producing $$6th$$ unit is $$Rs.420$$.Mathematics

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