Use the following to answer question:
-(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fourth purse is:
A)$60.
B)$50.
C)$40.
D)$20.

Question

Use the following to answer question: 
-(Table: Cost Data)Use Table: Cost Data.The marginal cost of producing the fourth purse is:
A)$60. 
B)$50. 
C)$40. 
D)$20.

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one additional unit. From the table, we can see that the total cost of producing 4 purses is $180 and the total cost of producing 3 purses is $140. So, the marginal cost of producing the fourth purse is $40 ($180-$140=$40).

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