Table 13-8

-Refer to Table 13-8.What is the marginal cost of the 8th gigaplot at Jimmy's Gigaplot factory?

Question

Table 13-8
 
-Refer to Table 13-8.What is the marginal cost of the 8th gigaplot at Jimmy's Gigaplot factory?

Quizplus · Accepted Answer

Marginal cost is the cost of producing one additional unit. To find the marginal cost of the 8th gigaplot, we look at the cost of producing 8 gigaplots versus the cost of producing 7 gigaplots. The cost of producing 8 gigaplots is $216, while the cost of producing 7 gigaplots is $189. Therefore, the marginal cost of the 8th gigaplot is $27 (216-189). The best choice is B.

Table 13-8 -Refer to Table 13-8.What Is the Marginal Cost of the Marginal