According to the table below,at what level of output is marginal cost minimized?
$$\begin{array} { | l | l | l| }
\hline \mathbf { Q } & \mathbf { F C } & \mathbf { V C } \
\hline 0 & 1,000 & 0 \
\hline 20 & 1,000 & 350 \
\hline 50 & 1,000 & 700 \
\hline 90 & 1,000 & 1,050 \
\hline 125 & 1,000 & 1,400 \
\hline 145 & 1,000 & 1,750 \
\hline 160 & 1,000 & 2,100 \
\hline
\end{array}$$
A) 90
B) 50
C) 125
D) 160

Question

According to the table below,at what level of output is marginal cost minimized?
$$\begin{array} { | l | l | l| } 
\hline \mathbf { Q } & \mathbf { F C } & \mathbf { V C } \
\hline 0 & 1,000 & 0 \
\hline 20 & 1,000 & 350 \
\hline 50 & 1,000 & 700 \
\hline 90 & 1,000 & 1,050 \
\hline 125 & 1,000 & 1,400 \
\hline 145 & 1,000 & 1,750 \
\hline 160 & 1,000 & 2,100 \
\hline
\end{array}$$
A) 90
B) 50
C) 125
D) 160

Quizplus · Accepted Answer

Marginal cost is minimized at the level of output where the increase in variable cost per unit of output is the smallest. Between 50 and 90 units, the increase in variable cost is the smallest, indicating that marginal cost is minimized at 90 units.

According to the Table Below,at What Level of Output Is