Table 5.4
-Table 5.4 presents the cost schedule for David's Figs. If David produces two figs, David's marginal costs are
A) $80.
B) $90.
C) $100.
D) $170.

Question

Table 5.4
-Table 5.4 presents the cost schedule for David's Figs. If David produces two figs, David's marginal costs are
A) $80. 
B) $90. 
C) $100. 
D) $170.

Quizplus · Accepted Answer

Marginal cost is the change in total cost divided by the change in quantity produced. In this case, the change in quantity produced is 1 (from 1 fig to 2 figs), and the change in total cost is $90 (from $80 to $170). Therefore, the marginal cost is $90.

Table 5.4 -Table 5.4 Presents the Cost Schedule for David's Figs. If