If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps,then the difference of $300 is the marginal cost of producing the 5th lamp.

Question

Quizplus · Accepted Answer

The difference of $300 is the marginal cost of producing the 6th lamp, not the 5th. The cost given is cumulative, so the marginal cost refers to the cost of producing one more unit beyond what has already been produced.

If It Costs Hobie $900 to Produce 5 Lamps and $1,200