When a firm produces one unit,the variable cost is $3.When the firm produces two units,the variable cost is $6.What is the marginal cost associated with two units of production?
A) $2
B) $0.5
C) $6
D) $3

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred by producing one more unit of a product. In this case, the cost of producing the second unit is $6 - $3 = $3, making the marginal cost $3.

When a Firm Produces One Unit,the Variable Cost Is $3