Reference Data: Output (Q) 0 1 2 3 4 5 Total Cost (TC) ₹200 ₹310 ₹410 ₹500 ₹604 ₹710 Diminishing marginal returns start to occur between units:

CA Foundation · Business Economics · PYQS · May 2025
Reference Data: Output (Q) 0 1 2 3 4 5 Total Cost (TC) ₹200 ₹310 ₹410 ₹500 ₹604 ₹710 Diminishing marginal returns start to occur between units:
(A) A. 1 and 2
(B) B. 2 and 3
(C) C. 3 and 4
(D) D. 4 and 5

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 3 and 4

Topics: Theory of Production and Cost

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