The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the marginal cost?
A) 200
B) 5Q
C) 5
D) 5 + (200/Q)
E) none of the above

Question

Quizplus · Accepted Answer

The marginal cost (MC) is the derivative of the total cost function with respect to quantity (Q).

MC = d(TC)/dQ = d(200 + 5Q)/dQ = 5

Therefore, the marginal cost is a constant of 5. Answer choice C, 5, is the correct answer.

The Total Cost (TC) of Producing Computer Software Diskettes (Q)