A factory produces 500 LED bulbs per annum. The variable cost per unit is ₹50. The fixed expenses are ₹10,000 per annum. If the production is increased by one unit, then the marginal cost per unit will be:

Correct option is A

Marginal Cost (MC) = Increase in Total Cost due to producing one additional unit.
Key principle: Marginal cost includes only variable cost per unit, because fixed costs do not change when output increases by one unit.
Given:
· Variable cost per unit = ₹50
· Fixed cost = ₹10,000 (does not change with production volume)
Production increases from 500 to 501 units → only variable cost increases.
Therefore:
Marginal Cost = Variable Cost per unit = ₹50
So the correct answer is: ₹50