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Business Data Management · Quiz 1 · 5 Jun 2022 · May 2022 term

Question 20: | Total Variable Cost (Rs.) | Number of Units Produced (…

Question 20

+1 markNumerical answer

A company wants to start manufacturing a product that will be sold in a competitive market at a price of Rs.15 each. Estimates indicate that a fixed cost of Rs. 10 will be incurred every day. The total variable cost (in Rs.) and the corresponding number of units that can be produced in a day (at the specified total variable cost) are provided in the table below. With this information, answer the given subquestions.

Total Variable Cost (Rs.)Number of Units Produced (units/day)
00
813
1015
1220
1522
1725
2027

What is the marginal cost if the recommended number of products (identified in the previous question) is produced [Note: Round your answer to two decimal places]?.

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Correct answer: 7.95 (accepted within ±0.15)

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Question 20 of 20 in the IIT Madras BS Business Data Management (BDM) Quiz 1 paper sat on 5 Jun 2022, in the May 2022 term (IIT M DIPLOMA QUIZ1 EXAM QPE1 05 Jun 2022 IBA). It carries 1 mark.

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