1858EconomicsMedium
Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true?
AAverage fixed cost is Rs10
BVariable cost rises by Rs100
CMarginal cost is Rs20
DAverage cost falls
Correct answer
B. Variable cost rises by Rs100
Explanation
The correct answer is Variable cost rises by Rs100.