Exhibit 6-9 Cost schedule for firm X $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Output } \
\text { Quantity }
\end{array} & \begin{array} { c }
\text { Total Fixed } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Total Variable } \
\text { Cost }
\end{array} \
\hline 0 & \$ 100 & \$ 0 \
1 & 100 & 50 \
2 & 100 & 84 \
3 & 100 & 108 \
4 & 100 & 127 \
5 & 100 & 150 \
\hline
\end{array}$$ As shown in Exhibit 6-9, the marginal cost of producing the third unit is:

Question

Exhibit 6-9 Cost schedule for firm X $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Output } \
\text { Quantity }
\end{array} & \begin{array} { c } 
\text { Total Fixed } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total Variable } \
\text { Cost }
\end{array} \
\hline 0 & \$ 100 & \$ 0 \
1 & 100 & 50 \
2 & 100 & 84 \
3 & 100 & 108 \
4 & 100 & 127 \
5 & 100 & 150 \
\hline
\end{array}$$ As shown in Exhibit 6-9, the marginal cost of producing the third unit is:

Quizplus · Accepted Answer

Marginal cost is the change in total cost when one more unit is produced. For the third unit, the total variable cost increases from $84 to $108, a change of $24. Total fixed cost remains constant and does not affect marginal cost calculation.

Exhibit 6-9 Cost Schedule for Firm X As Shown in Exhibit 6-9, the Marginal Cost of Producing