Table 6.7
$$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array} { c }
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & & \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 & 12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$$ Table 6.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 6.7.The marginal cost per unit of production when the firm produces 100 lanterns is _________.

Question

Table 6.7
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity of } \
\text { Lanterns }
\end{array} & \begin{array} { c } 
\text { Fixed Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Variable Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Total Cost } \
\text { (dollars) }
\end{array} \
\hline 75 & 200 & 170 & 370 & 4.93 \
\hline 80 & 200 & 230 & 430 & 5.36 \
\hline 90 & 200 & & & 7.67 \
\hline 100 & 200 & 810 & & \
\hline 115 & 200 & & & 11.8 \
\hline 117 & 200 & 1264 & 1464 & 12.5 \
\hline 120 & 200 & 1480 & & \
\hline
\end{array}$$ Table 6.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 6.7.The marginal cost per unit of production when the firm produces 100 lanterns is _________.

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity. From 90 to 100 lanterns, the total cost increases from $690 (calculated from 90 lanterns at $7.67 average total cost) to $1010 (calculated from 100 lanterns at $10.1 average total cost), so the marginal cost is ($1010 - $690) / (100 - 90) = $32.

Table 67 Table 67 Shows Cost Data for Lotus Lanterns, a Producer of |