If the total variable cost of producing 5 units of output is $10 and the total variable cost of producing 6 units is $15,the marginal cost of producing the sixth unit is $5.

Question

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit of output. Using the information given, we can see that the total variable cost increased by $5 when moving from 5 units to 6 units. Therefore, the marginal cost of producing the sixth unit is $5.

If the Total Variable Cost of Producing 5 Units of Output