Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. The marginal cost of the third microwave oven is
A) $50.
B) $166.67.
C) $300.
D) indeterminate from this information.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. The marginal cost of the third microwave oven is
A) $50. 
B) $166.67. 
C) $300. 
D) indeterminate from this information.

Quizplus · Accepted Answer

The marginal cost of producing an additional unit is the change in total cost divided by the change in quantity. For the third microwave oven, the total cost increases from $400 to $450, which is a $50 increase for one additional unit, making the marginal cost $50.

Refer to the Short-Run Information Provided in Figure 8