What is the marginal cost of producing a sixth unit of output?
A) $29.
B) $92.
C) $100.
D) Cannot be determined with the information available.

Question

Quizplus · Accepted Answer

The marginal cost is calculated as the change in cost divided by the change in quantity produced. From the table given, we can see that the total cost of producing 5 units is $460, while the total cost of producing 6 units is $552. Therefore, the change in cost is $92 (552-460), and the change in quantity produced is 1. Thus, the marginal cost of producing a sixth unit of output is $92.

What Is the Marginal Cost of Producing a Sixth Unit