Table 13-13
Diana's Dress Emporium

-Refer to Table 13-13.What is the marginal cost of the 8th unit?

Question

Table 13-13
Diana's Dress Emporium
 
-Refer to Table 13-13.What is the marginal cost of the 8th unit?

Quizplus · Accepted Answer

The marginal cost is calculated as the change in total cost divided by the change in quantity. The total cost of producing 7 units is $760, and the total cost of producing 8 units is $880. Therefore, the marginal cost of the 8th unit is ($880 - $760)/1 = $120. The best choice(s) depends on the context and objectives of the decision-maker, which are not provided in the question.

Table 13-13 Diana's Dress Emporium