The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4
In Table 7.4, at 4 units of output marginal cost is:

Question

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4
 In Table 7.4, at 4 units of output marginal cost is:

Quizplus · Accepted Answer

Marginal cost is the additional cost of producing one more unit of output. It can be calculated by finding the difference between the total cost of producing two consecutive units of output. In this case, the marginal cost between 3 and 4 units of output is $15, as the total cost of producing 4 units is $70 and the total cost of producing 3 units is $55. Therefore, the correct answer is B, $15.

The Table Given Below Shows the Total Cost of Producing