Exhibit 22-11

-Refer to Exhibit 22-11.Marginal cost of the first unit of output is

Name: Exhibit 22-11 -Refer to Exhibit 22-11.Marginal cost of the first unit of output is
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Question

Exhibit 22-11
 
-Refer to Exhibit 22-11.Marginal cost of the first unit of output is

Quizplus · Accepted Answer

The marginal cost is calculated by taking the change in the total cost when output is increased by one unit. From the table, we can see that the total cost increases from $2,000 to $2,070 when output increases from 0 to 1. Therefore, the marginal cost of the first unit of output is $70 (=$2,070-$2,000).

Exhibit 22-11 -Refer to Exhibit 22-11.Marginal Cost of the First Unit of the First