-Use Table 6.6 to answer this question.Assuming that the only variable input is labour and all units of labour cost the same,what is the value of marginal cost when it is at a minimum?

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Quizplus · Accepted Answer

Marginal cost (MC) is at its minimum when the additional cost of producing one more unit is the lowest. Since all units of labor cost the same, the minimum MC corresponds to the point where the increase in total cost for producing one additional unit is the lowest. Without the specific data from Table 6.6, we typically look for the point where MC starts to increase after decreasing or where it is the lowest before increasing again. Given the choices, $4 is the lowest value, suggesting it is the point where MC is at its minimum.