If the total variable cost of producing five units of output is $10 and the total variable cost of producing six units is $15, the marginal cost of producing the sixth unit is $5.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost of producing one more unit of output. In this case, the total variable cost increased from $10 to $15 when production increased from 5 units to 6 units, which means the marginal cost of producing the 6th unit is $5.

If the Total Variable Cost of Producing Five Units of Output