Table 14-8
The following table presents cost and revenue information for Soper's Port Vineyard.

-Refer to Table 14-8.What is the marginal cost of the 8th unit?

Question

Table 14-8
The following table presents cost and revenue information for Soper's Port Vineyard.
 
-Refer to Table 14-8.What is the marginal cost of the 8th unit?

Quizplus · Accepted Answer

To find the marginal cost of the 8th unit, we need to subtract the total cost of producing 7 units from the total cost of producing 8 units. 
Total cost of producing 8 units = $980
Total cost of producing 7 units = $860
Marginal cost of the 8th unit = Total cost of producing 8 units - Total cost of producing 7 units = $980 - $860 = $120

Therefore, the best choice is C as it correctly identifies the marginal cost of the 8th unit.

Table 14-8 The Following Table Presents Cost and Revenue Information for Soper's