New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The Marginal cost of production of a commodity

    is
    A the cost that the firm could have incurred when a different technique was adopted Correct Answer Incorrect Answer
    B the change in total cost that comes from making or producing one additional item. Correct Answer Incorrect Answer
    C the next best alternative output scarified. Correct Answer Incorrect Answer
    D the cost that a firm could have incurred under a different method of production Correct Answer Incorrect Answer

    Solution

    The marginal cost of production is the change in total cost that comes from making or producing one additional item. The purpose of analyzing marginal cost is to determine at what point of organization can achieve a economies of scale.

    Practice Next

    Relevant for Exams: