Cost schedule

-In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is
A) $1.20.
B) $2.00.
C) $5.00.
D) $15.00.

Question

Cost schedule
 
-In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is
A) $1.20. 
B) $2.00. 
C) $5.00. 
D) $15.00.

Quizplus · Accepted Answer

The marginal cost is calculated by the change in total cost divided by the change in quantity. If the total cost increases by $20 when output increases from 8 to 12 units, the marginal cost for each of those 4 units is $20/4 = $5.00.

Cost Schedule -In the Above Table, When Output Increases from 8 to Increases