The following table shows the total output, variable costs, fixed costs, total costs, average total costs, and marginal costs of a firm, with some cells in the table intentionally left blank.

-Refer to the table above.What is the marginal cost when the firm produces 5 units of output?

Question

The following table shows the total output, variable costs, fixed costs, total costs, average total costs, and marginal costs of a firm, with some cells in the table intentionally left blank.
 
-Refer to the table above.What is the marginal cost when the firm produces 5 units of output?

Quizplus · Accepted Answer

Marginal cost is calculated by taking the difference between total cost of producing n units and total cost of producing n-1 units. In this case, the marginal cost of producing 5 units would be the difference between the total cost of producing 5 units ($30) and the total cost of producing 4 units ($26), which would be $4. Therefore, the correct answer is (D) $2.

The Following Table Shows the Total Output, Variable Costs, Fixed