If the total variable cost of producing 5 units of output is $10 and the total variable cost of producing 6 units is $15, the marginal cost of producing a sixth unit is $5.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost of producing one more unit of output. In this case, the total variable cost increased by $5 when output increased from 5 to 6 units, so the marginal cost of producing the sixth unit is $5.

If the Total Variable Cost of Producing 5 Units of Output