If the average total cost of producing 20 units of output is $15 and the average total cost of 21 units of output equals $15, then the marginal cost of the 21^st unit is _____.

Question

Quizplus · Accepted Answer

The marginal cost of producing the 21st unit is the same as the average total cost at 21 units because the average total cost remains unchanged as output increases from 20 to 21 units. This indicates that the cost of producing the additional unit (21st unit) is exactly equal to the average, which is $15.

If the Average Total Cost of Producing 20 Units of Output