According to the table below, what is the marginal cost of producing 90 units of output?
A) 5.32
B) 8.75
C) 11.67
D) 21.00

Question

According to the table below, what is the marginal cost of producing 90 units of output? 
A) 5.32 
B) 8.75 
C) 11.67 
D) 21.00

Quizplus · Accepted Answer

Marginal cost is calculated as the change in total cost divided by the change in quantity produced. From the table, we see that the change in total cost from producing 80 units to 90 units is $87.50 - $80.00 = $7.50. Therefore, the marginal cost of producing 90 units is $7.50 / 0.86 = $8.72, which rounds to $8.75 (the closest option). Therefore, the correct answer is B.

According to the Table Below, What Is the Marginal Cost