Use the following to answer question(s): Supply and Marginal Factor Cost

-(Exhibit: Supply and Marginal Factor Cost) The MFC of the fourth unit of the factor is:

Question

Use the following to answer question(s): Supply and Marginal Factor Cost
 
-(Exhibit: Supply and Marginal Factor Cost) The MFC of the fourth unit of the factor is:

Quizplus · Accepted Answer

The Marginal Factor Cost (MFC) is the additional cost of employing an additional unit of a factor of production. It is calculated as the change in total cost when one more unit of the factor is employed. Without the specific exhibit, a general approach to find the MFC for the fourth unit involves looking at the difference in total cost between employing the third and fourth units. If the total cost of employing three units is $10 and the total cost of employing four units is $24, the MFC for the fourth unit would be $24 - $10 = $14.

Use the Following to Answer Question(s): Supply and Marginal Factor