Exhibit 6-9 Cost schedule for firm X

-As shown in Exhibit 6-9,the marginal cost of producing the third unit is:

Question

Exhibit 6-9 Cost schedule for firm X
 
-As shown in Exhibit 6-9,the marginal cost of producing the third unit is:

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred in producing one more unit. From the graph, the cost of producing the second unit is $20 and the cost of producing the fourth unit is $28. So, the cost of producing the third unit is the difference between the cost of producing the fourth and second units, which is $28 - $20 = $8. Adding this to the cost of producing the second unit ($20), we get the marginal cost of producing the third unit as $20 + $8 = $28. Therefore, option C is correct.

Exhibit 6-9 Cost Schedule for Firm X