$\begin{array}{ccccccc}
&Variable &Total&&&& Marginal \
\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \
1 & 200 & & & & & \
2 & 300 & & & & & \
3 & 500 & & & & & \
4 & 800 & & & &
\end{array}$
-At an output of 1,MC is
A)0.
B)$100.
C)$200.
D)$300.
E)cannot be determined.

Question

Quizplus · Accepted Answer

Marginal Cost (MC) is the increase in total cost that arises from an extra unit of production. At an output of 1, the total variable cost is $200. Since there is no previous output level to compare it to (it's the first unit of production), the MC for the first unit is the total cost of producing that unit, which is $200.

-At an Output of 1,MC Is A)0

-At an Output of 1,MC Is
A)0