-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. The marginal cost of increasing output from 3 to 4 barrels of pickles is
A) $25.
B) $75.
C) $20.
D) $50.

Question

-The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. The marginal cost of increasing output from 3 to 4 barrels of pickles is
A) $25. 
B) $75. 
C) $20. 
D) $50.

Quizplus · Accepted Answer

The marginal cost is the change in total cost when output is increased by one unit. If the total cost for 3 barrels is $95 and for 4 barrels is $120, the marginal cost is $120 - $95 = $25.

-The Above Table Gives Some Cost Data for Peter's Pickles