Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant.
-In Table 5.4,the marginal cost is at a minimum when:
A) The first 10 units are produced.
B) Output increases from 10 units to 20 units.
C) Output increases from 20 units to 30 units.
D) Output increases from 30 units to 40 units.

Question

Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant. 
-In Table 5.4,the marginal cost is at a minimum when:
A) The first 10 units are produced. 
B) Output increases from 10 units to 20 units. 
C) Output increases from 20 units to 30 units. 
D) Output increases from 30 units to 40 units.

Quizplus · Accepted Answer

The marginal cost is at a minimum when output increases from 10 units to 20 units. This can be observed in the table where the marginal cost goes from $50 to $45 when output increases from 10 to 20 units.

Table 5.4-Plant Costs This Table Shows Total Costs at Different Output Levels for Output