Reference: Ref 10-1 (Table: Costs of Antibiotics) Refer to the table. The marginal social cost of the fifth unit is:
A) $15.
B) $5.
C) $35.
D) $30.

Question

Reference: Ref 10-1 (Table: Costs of Antibiotics) Refer to the table. The marginal social cost of the fifth unit is:
A) $15. 
B) $5. 
C) $35. 
D) $30.

Quizplus · Accepted Answer

The marginal social cost is the cost of producing an additional unit of the antibiotic. From the table, we can see that the cost of producing the fifth unit is $40 and the cost of producing the fourth unit is $5. So, the marginal cost of the fifth unit is $40 - $5 = $35. Therefore, the best choice is C.

Reference: Ref 10-1 (Table: Costs of Antibiotics) Refer to the Table