Q
Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?
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A
A. Marginal cost is rs20
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B
B. Average cost falls
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C
C. Variable cost rises by rs100
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D
D. Average fixed cost is rs10
Correct Answer:
C. C. Variable cost rises by rs100
