Consider the following demand and cost information
$\begin{array} { | c | c | c | }
\hline \text { Quantity } & \text { Price } & \text { Total Cost } \
\hline 0 & \text { R40 } & \text { R10 } \
\hline 1 & \text { R30 } & \text { R15 } \
\hline 2 & \text { R20 } & \text { R25 } \
\hline 3 & \text { R10 } & \text { R40 } \
\hline 4 & \text { R0 } & \text { R60 } \
\hline
\end{array}$

-Refer to the table above. The marginal cost of the fourth unit is

Question

Consider the following demand and cost information
$\begin{array} { | c | c | c | } 
\hline \text { Quantity } & \text { Price } & \text { Total Cost } \
\hline 0 & \text { R40 } & \text { R10 } \
\hline 1 & \text { R30 } & \text { R15 } \
\hline 2 & \text { R20 } & \text { R25 } \
\hline 3 & \text { R10 } & \text { R40 } \
\hline 4 & \text { R0 } & \text { R60 } \
\hline
\end{array}$

-Refer to the table above. The marginal cost of the fourth unit is

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred from producing one more unit. In this case, the cost increases from R40 to R60 when producing the fourth unit, meaning the additional cost for the fourth unit is R20. Therefore, the marginal cost of the fourth unit is R20. The best choice is option C.

Consider the Following Demand and Cost Information -Refer to the Table Above