The marginal cost when output = 10 is equal to
A) the slope of a line drawn tangent to the total cost curve where output = 10.
B) the total cost of 10 units of output divided by 10.
C) the average cost of 10 units of output.
D) the slope of a ray drawn from the origin to the point on the total cost curve where output = 10.

Question

Quizplus · Accepted Answer

The marginal cost at a given level of output is the slope of the total cost curve at that point, which can be represented by a line tangent to the curve at the output level in question. This is because marginal cost reflects the change in total cost from producing one more unit of output, which is conceptually equivalent to the slope of the total cost curve at a specific output level.

The Marginal Cost When Output = 10 Is Equal to