Table 14-13
Diana's Dress Emporium
-Refer to Table 14-13. What is the marginal cost of the 8th unit?

Name: Table 14-13 Diana's Dress Emporium -Refer to Table 14-13. What is the marginal cost of the 8th unit?
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Question

Table 14-13
Diana's Dress Emporium 
-Refer to Table 14-13. What is the marginal cost of the 8th unit?

Quizplus · Accepted Answer

The marginal cost of the 8th unit is $120 which is greater than the cost of producing the 8th unit, $100. Therefore, producing the 8th unit would result in a loss. The best choice is to produce 7 units at a total cost of $910, which yields a profit of $80.