This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market. According to the table shown,what is the firm's marginal cost from producing the 2^nd unit?

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost of producing one more unit of output. To find the marginal cost from producing the 2^nd unit, we look at the change in total cost from producing 30 units to 31 units. The change in total cost is $225 - $217.50 = $7.50, which is the marginal cost for producing the 2^nd unit. Therefore, the correct answer is B.

This Table Shows the Total Costs for Various Levels of Output