Refer to the following:
The price of capital is $100 per unit; the price of labor is $25 per unit.
-How much does the seventh unit of output add to total cost?
A) nothing
B) $400
C) $800
D) $4,000
E) $8,000

Question

Refer to the following:
  The price of capital is $100 per unit; the price of labor is $25 per unit.
-How much does the seventh unit of output add to total cost?
A) nothing 
B) $400 
C) $800 
D) $4,000 
E) $8,000

Quizplus · Accepted Answer

The seventh unit of output adds $400 to the total cost, as it represents the marginal cost of producing that unit.

Refer to the Following