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Question

Vysakh is selling samosas. He already sold 250 samosas. His decision on whether or not to sell the 251st samosa is based on the ___


A

MC of the 251st samosa

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B

TC of the 251 samosas

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C

ATC of 251 samosas

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D

AVC of 251 samosas

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Solution

The correct option is A

MC of the 251st samosa


On taking any economic decisions, only the marginal quantities are important. In this case, the relevant decision variable is the marginal quantity of the 251st samosa.


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