-In Exhibit K-7, the marginal cost of the fourth unit is
A) $60
B) $40
C) $20
D) $15
E) $10

Question

-In Exhibit K-7, the marginal cost of the fourth unit is
A) $60 
B) $40 
C) $20 
D) $15 
E) $10

Quizplus · Accepted Answer

The marginal cost of producing an additional unit is the change in total cost that comes from producing one more unit. To find the marginal cost of the fourth unit, you subtract the total cost of producing three units from the total cost of producing four units. The difference is the marginal cost of the fourth unit.

-In Exhibit K-7, the Marginal Cost of the Fourth Unit