Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4. The marginal cost of the sixth microwave oven is
A) $83.33.
B) $116.67.
C) $200.
D) $1200.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4. The marginal cost of the sixth microwave oven is
A) $83.33. 
B) $116.67. 
C) $200. 
D) $1200.

Quizplus · Accepted Answer

The marginal cost of producing the sixth unit is $116.67. This means that the cost of producing the sixth unit is $116.67 more than the cost of producing the fifth unit. Based on this information, it would be best for the company to produce up to six units since after that, the marginal cost exceeds the price at which the ovens can be sold.

Refer to the Information Provided in Figure 8