(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The marginal cost of producing the fourth purse is:
A)$60
B)$50
C)$40
D)$20

Question

(Table: Cost Data) Look at the table Cost Data, which shows data for a designer purse factory.The marginal cost of producing the fourth purse is:
A)$60 
B)$50 
C)$40 
D)$20

Quizplus · Accepted Answer

The marginal cost is the increase in total cost that comes from producing one more unit of output. From the table, we can see that the total cost of producing 4 purses is $310 and the total cost of producing 3 purses is $270. So, the marginal cost of producing the fourth purse is:

Marginal Cost = Total Cost of 4 purses - Total Cost of 3 purses
Marginal Cost = $310 - $270
Marginal Cost = $40

Therefore, the answer is choice C.

(Table: Cost Data) Look at the Table Cost Data, Which