Table 14-7
Sally owns the only shoe store in town.She has the following cost and revenue information.

-Refer to Table 14-7.What is the marginal cost of the 8th pair of shoes?
A) $50
B) $60
C) $90
D) $110

Question

Table 14-7
Sally owns the only shoe store in town.She has the following cost and revenue information.
 
-Refer to Table 14-7.What is the marginal cost of the 8th pair of shoes?
A) $50 
B) $60 
C) $90 
D) $110

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one more unit. In this case, the marginal cost of the 8th pair of shoes is the difference between the total cost of producing 8 pairs and the total cost of producing 7 pairs. 
Total cost of producing 8 pairs = $970
Total cost of producing 7 pairs = $880
Marginal cost of the 8th pair of shoes = $970 - $880 = $90
Therefore, the answer is (C) $90.

Table 14-7 Sally Owns the Only Shoe Store in Town.She Has the Has