Arrange in descending order the marginal cost at following levels of output(X) based on the estimated…
Marginal cost is the derivative of total cost: \(MC=10-0.04X\). At outputs of 10, 20, 30 and 40 units, marginal cost is respectively 9.6, 9.2, 8.8 and 8.4, giving that…
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Arrange in descending order the marginal cost at following levels of output(X) based on the estimated total cost function TC= 10 + 10X - 0.02X2.
a) 20 units
b) 10 units
c) 40 units
d) 30 units
Answer and explanation
Correct answer C
Marginal cost is the derivative of total cost: . At outputs of 10, 20, 30 and 40 units, marginal cost is respectively 9.6, 9.2, 8.8 and 8.4, giving that descending order of output levels.
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Telangana SET (TG SET)