Refer to the information provided in Figure 8.5 below to answer the questions that follow. Figure 8.5
-Refer to Figure 8.5. The marginal cost of the third oven is
A) $50.
B) $100.
C) $150.
D) indeterminate from this information.

Question

Refer to the information provided in Figure 8.5 below to answer the questions that follow.  Figure 8.5
-Refer to Figure 8.5. The marginal cost of the third oven is
A) $50. 
B) $100. 
C) $150. 
D) indeterminate from this information.

Quizplus · Accepted Answer

The marginal cost of the third oven is the change in total cost from producing 2 ovens to 3 ovens. From the graph, we can see that the total cost of producing 2 ovens is $200 and the total cost of producing 3 ovens is $250. Therefore, the marginal cost of the third oven is $250 - $200 = $50.

Refer to the Information Provided in Figure 8