If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is
A) $1.
B) $3.
C) $5.
D) $9.36.

Question

Quizplus · Accepted Answer

The marginal cost of producing the 11th unit is the additional cost incurred by producing that extra unit, calculated as the difference in total costs when production increases from 10 units to 11 units. In this case, it's $103 - $100 = $3.

If a Firm's Total Costs Are $100 When 10 Units