Use the table below to answer the following questions.
Table 11.2.3
-Refer to Table 11.2.3,which gives the total cost schedule for Brenda's Balloon Shop,a perfectly competitive firm.The marginal cost of increasing production from 4 balloons an hour to 5 balloons an hour is

Question

Use the table below to answer the following questions.
Table 11.2.3 
-Refer to Table 11.2.3,which gives the total cost schedule for Brenda's Balloon Shop,a perfectly competitive firm.The marginal cost of increasing production from 4 balloons an hour to 5 balloons an hour is

Quizplus · Accepted Answer

To find the marginal cost of increasing production from 4 balloons an hour to 5 balloons an hour, we need to look at the change in total cost (TC) when production increases from 4 to 5 balloons. 
From the table, we see that the TC increases from $23.20 to $28.00 when production increases from 4 to 5 balloons. Therefore, the marginal cost of producing the 5th balloon is:

Marginal Cost = Change in Total Cost / Change in Quantity
= ($28.00 - $23.20) / (5 - 4)
= $4.80

Therefore, the answer is D.

Use the Table Below to Answer the Following Questions