Refer to the table shown. Marginal cost is minimized when how many units of output are produced? $\begin{array}{|c|c|}
\hline \text { Units of output } & \text { Total cost } \
\hline 0 & 5 \
\hline 1 & 11 \
\hline 2 & 16 \
\hline 3 & 20 \
\hline 4 & 23 \
\hline 5 & 25 \
\hline 6 & 26 \
\hline
\end{array}$

A) 3
B) 4
C) 5
D) 6

Question

Refer to the table shown. Marginal cost is minimized when how many units of output are produced? $\begin{array}{|c|c|}
\hline \text { Units of output } & \text { Total cost } \
\hline 0 & 5 \
\hline 1 & 11 \
\hline 2 & 16 \
\hline 3 & 20 \
\hline 4 & 23 \
\hline 5 & 25 \
\hline 6 & 26 \
\hline
\end{array}$

A) 3
B) 4
C) 5
D) 6

Quizplus · Accepted Answer

Marginal cost is the change in total cost when one more unit is produced. It is minimized at the point where the increase in total cost is the smallest. From the table, the marginal cost is minimized at 6 units, where the total cost increases by only 1 unit (from 25 to 26).

Refer to the Table Shown A) 3 B) 4 C) 5 D) 6

Refer to the Table Shown A) 3
B) 4
C) 5
D) 6