If q = 1, 2, 3 units of output, and total costs are, respectively, $2, 3, 4, then in this range of output marginal cost:
A)is constant.
B)is rising.
C)is falling.
D)is $2.00, $1.50, $1.33.
E)can't be determined by the data given.

Question

Quizplus · Accepted Answer

Marginal cost refers to the change in total cost that arises when the quantity produced changes by one unit. In this case, as output increases from 1 to 2 to 3 units, the total cost increases from $2 to $3 to $4, respectively. This means the cost increases by $1 each time the output increases by one unit, indicating that the marginal cost is constant.

If Q = 1, 2, 3 Units of Output, and Total