If a firm's total costs are $100 when 10 units of output are produced and $105 when 11 units of output are produced, the marginal cost of the 11th unit is
A) $1.
B) $3.
C) $5.
D) $9.36.

Question

Quizplus · Accepted Answer

The marginal cost of producing the 11th unit is the additional cost incurred by producing that unit, calculated as the change in total costs divided by the change in quantity. Here, it's ($105 - $100) / (11 - 10) = $5.

If a Firm's Total Costs Are $100 When 10 Units