Answer to Question #304087 in Microeconomics for Bhavika

Question

Given the Following output schedule of a firm, calculate its marginal cost at different levels of output.

Units of Fixed Input-2

Units of Variable input - 0,1,2,3,4,5

Total output-0,10,25,50,65,70

Further, the price of fixed input is Rs. 200 per unit. And the price of a variable input is Rs. 100 per unit.

Answer 1

$Marginal Cost=\frac{∆InCost}{∆InQuantity}$