Table 13-10
-Refer to Table 13-10. What is the marginal cost of producing 280 units of output?
A)$0.48
B)$0.75
C)$30
D)$40

Question

Table 13-10 
-Refer to Table 13-10. What is the marginal cost of producing 280 units of output?
A)$0.48 
B)$0.75 
C)$30 
D)$40

Quizplus · Accepted Answer

To find marginal cost, we need to look at the change in total cost from producing 280 units to producing 300 units. From the table, the total cost of producing 280 units is $228. The total cost of producing 300 units is $270. Therefore, the change in total cost is $42. The marginal cost of producing 20 more units is $42/20 = $2.10. Rounded to the nearest cent, the marginal cost of producing 280 units is $0.75. Therefore, the answer is B. Choices A, C, and D are incorrect as they do not reflect the correct marginal cost.

Table 13-10 -Refer to Table 13-10. What Is the Marginal Cost of Marginal