Arrange the marginal cost in ascending order at the following levels of output (Q) based on the total…
Differentiating TC = 100 + 5Q2 gives marginal cost MC = 10Q. At outputs 5, 4, 6 and 2, marginal costs are 50, 40, 60 and 20 respectively, so the ascending order is iv, ii,…
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Arrange the marginal cost in ascending order at the following levels of output (Q) based on the total cost function TC= 100 + 5Q2
i. 5 units
ii. 4 units
iii. 6 units
iv. 2 units
Answer and explanation
Correct answer C
Differentiating TC = 100 + 5Q2 gives marginal cost MC = 10Q. At outputs 5, 4, 6 and 2, marginal costs are 50, 40, 60 and 20 respectively, so the ascending order is iv, ii, i, iii.
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Telangana SET (TG SET)