A firms ATC is Rs.300 at 5 units of output and Rs.320 at 6 units of output. The MC of producing 6th unit is...?
a) Rs. 20 b) Rs. 120 c) Rs. 320 d) Rs. 420
Answer in the material is given as 420..
please explain..
4 Replies
Sunshine
(Helping All)
(10575 Points)
Replied 07 June 2011
total cost= ATC* no. of units
total cost at 5 units = 300*5= 1500
total cost at 6 units= 320*6= 1920
there fore, MC of producing 6th unit- 1920-1500= 420
CA KETAN INANI
(sharp & tannan(article trainee) Always Ready to help)
(251 Points)
Replied 07 June 2011
agreed with sunshine
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