Comprehension

Directions for questions: Read the information given below and answer the questions that follow :

The following graph represents the variable cost of widgets as a function of quantity produced. The cost of production has two components, variable cost — which is given in the graph, and fixed cost — which is Rs 800 for the first shift in which 30 widgets can be produced and if more production is desired then a second shift is started which can produce an additional 30 widgets.

The fixed cost of the second shift is Rs 1200.

Average cost is defined as the total cost total number of the widgets

Marginal cost is defined as change in total cost change in number of widgets produced.

CAT/2000

Question . 77

If the number of widgets increase form 40 in July to 41 in September what is the marginal cost ?