Cost schedule

-Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is
A) $4.00.
B) $4.25.
C) $5.00.
D) $6.25.

Question

Cost schedule
 
-Using the data in the above table, when output increases from 4 to 9 units, the marginal cost of one of those 5 units is
A) $4.00. 
B) $4.25. 
C) $5.00. 
D) $6.25.

Quizplus · Accepted Answer

The marginal cost is calculated by the change in total cost divided by the change in quantity. If the total cost for 4 units and 9 units is given, subtract the total cost at 4 units from the total cost at 9 units, then divide by 5 (the change in quantity from 4 to 9 units). If this calculation results in $5.00, then C is the correct answer.

Cost Schedule -Using the Data in the Above Table, When Output Increases