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C A foundation economcics Paper4 Part I Questions for practice
QUESTION
Q5) The marginal cost of the sixth unit of output is:
Output Total Cost
0 240
1 330
2 410
3 480
4 540
5 610
6 690

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Correct

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Solution:
To calculate the marginal cost of the sixth unit of output, we need to look at the change in total cost when output increases from 5 units to 6 units. The marginal cost is the additional cost incurred in producing one more unit of output.

Using the information provided in the table, we can calculate the marginal cost of the sixth unit of output as follows:

Total cost of producing 5 units of output = ₹610
Total cost of producing 6 units of output = ₹690
Marginal cost of the sixth unit of output = Total cost of producing 6 units of output - Total cost of producing 5 units of output
= ₹690 - ₹610
= ₹80
Therefore, the marginal cost of the sixth unit of output is ₹80.
Correct option is (c)