Refer to the information provided in Table 8.5 below to answer the question(s) that follow.
Table 8.5
$$\begin{array} { c c c c c c c c }
\hline \begin{array} { c }
\text { Number of } \
\text { Swords }
\end{array} & \text { TVC } & \text { MC } & \text { AVC } & \text { TFC } & \text { TC } & \text { AFC } & \text { ATC } \
\hline 0 & & & & & 50 & \
\hline 1 & & 25 & & & & & \
\hline 2 & & & & & &&47.50 \
\hline 3 & & & 23.33 & & & \
\hline 4 & & & & & 150 & & \
\hline 5 & 135 & & & & & & \
\hline
\end{array}$$
-Refer to Table 8.5. If Phoebe produces two swords, her marginal cost is
A) $20.
B) $22.50.
C) $36.25.
D) $61.25.

Question

Refer to the information provided in Table 8.5 below to answer the question(s) that follow.
Table 8.5
 $$\begin{array} { c c c c c c c c } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Swords }
\end{array} & \text { TVC } & \text { MC } & \text { AVC } & \text { TFC } & \text { TC } & \text { AFC } & \text { ATC } \
\hline 0 & & & & & 50 & \
\hline 1 & & 25 & & & & & \
\hline 2 & & & & & &&47.50 \
\hline 3 & & & 23.33 & & & \
\hline 4 & & & & & 150 & & \
\hline 5 & 135 & & & & & & \
\hline
\end{array}$$
-Refer to Table 8.5. If Phoebe produces two swords, her marginal cost is
A) $20.
B) $22.50.
C) $36.25.
D) $61.25.

Quizplus · Accepted Answer

Marginal cost is the change in total variable cost divided by the change in output. In this case, the change in output is 1 (from 1 sword to 2 swords), and the change in total variable cost is $25 - $23.33 = $1.67. Therefore, the marginal cost is $1.67 / 1 = $1.67.

Refer to the Information Provided in Table 8 -Refer to Table 8