If a firm can produce 100 fishing rods at a total cost of $6000 and can produce 150 fishing rods for a total cost of $8000, then the marginal cost of a fishing rod in the quantity range between 100 and 150 is

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Quizplus · Accepted Answer

The marginal cost is calculated by the change in total cost divided by the change in quantity. Here, the change in total cost is $8000 - $6000 = $2000, and the change in quantity is 150 - 100 = 50. Thus, the marginal cost is $2000 / 50 = $40.

If a Firm Can Produce 100 Fishing Rods at a Total