If the total cost of producing five water heaters is $800 and the total cost of producing six water heaters is $900, the marginal cost of the sixth water heater is _____ and the average total cost of six water heaters is _____.

Question

Quizplus · Accepted Answer

The marginal cost of the sixth water heater is the difference in total cost when producing six water heaters instead of five, which is $900 - $800 = $100. The average total cost of six water heaters is the total cost divided by the number of water heaters, which is $900 / 6 = $150.

If the Total Cost of Producing Five Water Heaters Is