Micro

Production & Costs

Easy

The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost for the 5th unit of output?

Rs. 20.

Rs. 15.

Rs. 13.

Rs. 16.

✅ Correct Option: 1

Option 1: Rs. 20 -> Marginal cost is the additional cost incurred when producing one more unit of output. To find the marginal cost of the 5th unit, we calculate: MC = TC(5 units) - TC(4 units) = Rs 115 - Rs 95 = Rs 20. This represents the extra cost the firm incurs when increasing production from 4 to 5 units. -> correct

2025: 16 May Shift 1

Which of the following is not true?

2025: 27 May Shift 2

At the minimum point of the long run average cost curve .......... is observed.

2026: 13 May Shift 2

Keeping all other inputs constant, when a firm changes the labour from 3 to 4, the total product changes from 40 to 50. What is the marginal product of the 4th unit of labour?

2025: 3 June Shift 2

The cost of a firm has increased from Rs. $67$ to Rs. $80$ when the units of cotton production rose from $8$ to $9$ . Calculate the marginal cost of a firm?

2025: 3 June Shift 2

If all the resources are used in the production of cloth, the curve which gives the maximum amount of cloth produced in the economy for any given amount of machine is called?

2025: 28 May Shift 1

The shape of the average product and marginal product curves are...................

Both Inverse 'U' Shaped
Both 'U' Shaped
AP 'U' Shaped and MP Inverse 'U' Shaped
MP 'U' Shaped and AP Inverse 'U' shaped

The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost for the 5th unit of output?

Solution

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