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..
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Economics
Replies (4)
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
agreed with sunshine
420 as Explaine above...
nice explanation by sunshine
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