The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Suppose that the total fixed cost of producing five sailboats is $4,000, total variable cost is $4,000, and the total cost of producing six sailboats is $10,000. The marginal cost of the sixth sailboat is:

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-Suppose that the total fixed cost of producing five sailboats is $4,000, total variable cost is $4,000, and the total cost of producing six sailboats is $10,000. The marginal cost of the sixth sailboat is:

Quizplus · Accepted Answer

The marginal cost of producing the sixth sailboat is the additional cost incurred by producing one more sailboat, which is calculated by subtracting the total cost of producing five sailboats from the total cost of producing six sailboats. The total cost of producing five sailboats is the sum of total fixed cost ($4,000) and total variable cost ($4,000), which equals $8,000. The total cost of producing six sailboats is $10,000. Therefore, the marginal cost of the sixth sailboat is $10,000 - $8,000 = $2,000.

The Below Figure Shows the Various Combinations of the Goods