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)5¢
C)$6
D)$3

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred by producing one more unit. From one to two units, the cost increases from $3 to $6, so the marginal cost is $6 - $3 = $3.

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