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Prashant

· started a discussion

· 1 Months ago

Correct explanation (Question:326395.0)

Before:
Fixed cost 100000
Prodn qty 20000
Fixed cost pu= 5


Now:
Fixed cost: 100000
Prodn qty: 25000
Fixed cost pu:. 4

Crux:- if you increase production quantity, total fixed cost remain the same but fixed cost per unit changes as the prodn qty changes.

Question:

The total cost that arises when the quantity produced is increases by one unit is called

Options:
A)

Average cost 

B)

Marginal cost

C)

Fixed cost

D)

Unit cost

Solution:

Ans: (c)

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