The figure given below shows the cost curves of a firm.Figure 9.3
ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
-In Figure 9.3, what is the marginal cost at a quantity of 120 units?
A)$35
B)$40
C)$55
D)$60
E)$4,800

Question

The figure given below shows the cost curves of a firm.Figure 9.3
  ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
-In Figure 9.3, what is the marginal cost at a quantity of 120 units?
A)$35 
B)$40 
C)$55 
D)$60 
E)$4,800

Quizplus · Accepted Answer

To find the marginal cost at a quantity of 120 units, we need to look at the point where the MC curve intersects the X-axis (quantity axis) when extended from the 120 units mark on the ATC curve. From the graph, we can see that the MC curve intersects the X-axis at around $40. Therefore, the answer is (B) $40.

The Figure Given Below Shows the Cost Curves of a Firm.Figure