The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

-Refer to the table above.What is the firm's marginal cost per unit of output when it produces the 55th unit of the good?

Question

The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.
 
-Refer to the table above.What is the firm's marginal cost per unit of output when it produces the 55th unit of the good?

Quizplus · Accepted Answer

Marginal cost is the change in total cost divided by the change in output. In this case, the change in total cost is $0.50 (from $33.00 to $33.50) and the change in output is 1 unit (from 54 units to 55 units). Therefore, the marginal cost is $0.50 per unit of output.

The Following Table Shows the Total Output, Number of Workers