Assertion (A) Marginal cost and differential cost do not convey the same meaning in all the circumstances.
Reason (R) Differential cost increases or decreases due to change in fixed cost.

A) Both (A) and (R) are true and (R) is the correct explanation of (A) B) Both (A) and (R) are true, but (R) is not the correct explanation of (A) C) (A) is true, but (R) is false D) (A) is false, but (R) is true

Answer & Solution

Correct Answer: Option C

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Assertion (A) Marginal cost and differential cost do not convey the...

Assertion (A) Marginal cost and differential cost do not convey the same meaning in all the circumstances. Reason (R) Differential cost increases or decreases due to change in fixed cost.

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Assertion (A) Marginal cost and differential cost do not convey the same meaning in all the circumstances.
Reason (R) Differential cost increases or decreases due to change in fixed cost.