If fixed cost is $8,000,variable cost is $5,000 at an output of 2 and $9,000 at an output of 3,how much is marginal cost at an output of 3?
A)$3,000
B)$4,000
C)$5,000
D)$8,000
E)There is not enough information to determine marginal cost at an output of 3.

Question

Quizplus · Accepted Answer

To calculate marginal cost, we need to find the change in total cost when output increases by one unit. From the given information, we can calculate the total cost at output levels of 2 and 3 as follows:

Total cost at output 2 = fixed cost + variable cost = $8,000 + $5,000 = $13,000
Total cost at output 3 = fixed cost + variable cost = $8,000 + $9,000 = $17,000

Now, we can find the change in total cost from output 2 to output 3:

Change in total cost = Total cost at output 3 - Total cost at output 2
= $17,000 - $13,000
= $4,000

Therefore, the marginal cost at an output of 3 is $4,000. 
Hence, the answer is B.

If Fixed Cost Is $8,000,variable Cost Is $5,000 at an Output