The figure given below shows the cost curves of a firm. Figure 8.3
ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
-In Figure 8.3,what is marginal cost at a quantity of 120 units?
A)$35
B)$40
C)$55
D)$60
E)$4,800

Question

The figure given below shows the cost curves of a firm. Figure 8.3 
 ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
-In Figure 8.3,what is marginal cost at a quantity of 120 units?
A)$35 
B)$40 
C)$55 
D)$60 
E)$4,800

Quizplus · Accepted Answer

At a quantity of 120 units, the intersection of the MC curve with the AVC curve gives us the marginal cost. This intersection point is approximately at $40. Therefore, the correct answer is B.

The Figure Given Below Shows the Cost Curves of a Firm