Answer the question on the basis of the following cost data: $\begin{array}{c}
\begin{array}{c}
\
\
\underline{\text {Output}}\
1 \
2 \
3 \
4 \
5 \
6 \
7 \
8
\end{array}
\begin{array}{c}
\text {Average}\
\text {Fixed}\
\underline{\text {Cost }}\
\$ 50.00 \
25.00 \
16.67 \
12.50 \
10.00 \
8.37 \
7.14 \
6.25

\end{array}
\begin{array}{c}
\text {Average}\
\text {Variable}\
\underline{\text {Cost }}\
\$ 100.00 \
80.00 \
66.67 \
65.00 \
68.00 \
73.33 \
80.00 \
87.50
\end{array}
\end{array}$
Refer to the data.The marginal cost of the fifth unit of output is:

Question

Answer the question on the basis of the following cost data: $\begin{array}{c}
\begin{array}{c}
\
\
\underline{\text {Output}}\
1 \
2 \
3 \
4 \
5 \
6 \
7 \
8
\end{array}
\begin{array}{c}
\text {Average}\
\text {Fixed}\
\underline{\text {Cost }}\
\$ 50.00  \
25.00 \
16.67 \
12.50 \
10.00 \
8.37 \
7.14 \
6.25

\end{array}
\begin{array}{c}
\text {Average}\
\text {Variable}\
\underline{\text {Cost }}\
 \$ 100.00  \
80.00 \
66.67 \
65.00 \
68.00 \
73.33 \
80.00 \
87.50
\end{array}
\end{array}$
 Refer to the data.The marginal cost of the fifth unit of output is:

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred in producing one additional unit of output. To find the marginal cost of the fifth unit of output, we need to subtract the total cost of producing four units from the total cost of producing five units.

Total cost of producing four units = $332
Total cost of producing five units = $412
Marginal cost of the fifth unit of output = Total cost of producing five units - Total cost of producing four units
= $412 - $332
= $80

Therefore, the correct answer is C) $80.

Answer the Question on the Basis of the Following Cost