Option 1: Rs. 20 -> Marginal cost is the additional cost incurred when producing one more unit of output. To find the marginal cost of the 5th unit, we calculate: MC = TC(5 units) - TC(4 units) = Rs 115 - Rs 95 = Rs 20. This represents the extra cost the firm incurs when increasing production from 4 to 5 units. -> correct
The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost…
CUET UG 2025 — Economics Micro
2025mcqeasy
The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost for the 5th unit of output?
Official previous-year question
Held on 22 May 2025 · Verified 13 Jul 2026.
Options
- A
Rs. 20.
- B
Rs. 15.
- C
Rs. 13.
- D
Rs. 16.
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