Harvey's Hardware is thinking about starting a line of lawnmowers to serve its customer base in the summer.The lawnmowers would be priced at $100 and Harvey the manager believes that they would sell 3 units.They have the following estimated costs.Use this information for question

-What is the marginal cost of producing the third unit?
A)$100
B)$200
C)$300
D)$400

Question

Harvey's Hardware is thinking about starting a line of lawnmowers to serve its customer base in the summer.The lawnmowers would be priced at $100 and Harvey the manager believes that they would sell 3 units.They have the following estimated costs.Use this information for question
 
-What is the marginal cost of producing the third unit?​
A)​$100 
B)$200 
C)$300 
D)​$400

Quizplus · Accepted Answer

Marginal cost is the change in total cost that results from producing one additional unit of output. In this case, the marginal cost of producing the third unit is $100, as the total cost of producing three units is $300 and the total cost of producing two units is $200.

Harvey's Hardware Is Thinking About Starting a Line of Lawnmowers