A firm producing 10 units of output incurs a total cost of $800.When it produces 11 units,the total cost increases to $890.What is the marginal cost of producing the eleventh unit?

Question

Quizplus · Accepted Answer

The marginal cost is the increase in total cost when one more unit is produced. In this case, the cost increased from $800 to $890 when production increased from 10 units to 11 units. Thus, the marginal cost of producing the eleventh unit is $890 - $800 = $90.

A Firm Producing 10 Units of Output Incurs a Total