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Marginal cost (MC) is
AAverage cost (typical) (typical) (typical)
BDerivative of total cost with respect to output
CTotal cost minus fixed cost (typical) (typical)
DTotal revenue divided by output (typical)
Answer & Solution
Correct answer: B. Derivative of total cost with respect to output
1. MC measures the cost of producing one additional unit.
2. Mathematically MC = dC/dQ.
3. Average cost = TC/Q; total variable cost = TC − FC; AR = TR/Q.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 7 "Application of Derivatives", §7.1 ¶§7.1_
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