Table 13-14
-Refer to Table 13-14. What is the marginal cost of the 2nd unit of output?
A)$10
B)$15
C)$24
D)$38

Question

Table 13-14 
-Refer to Table 13-14. What is the marginal cost of the 2nd unit of output?
A)$10 
B)$15 
C)$24 
D)$38

Quizplus · Accepted Answer

Marginal cost is calculated by dividing the change in total cost by the change in quantity. In this case, the change in total cost for producing the 2nd unit is $15 ($40 - $25), while the change in quantity is 1 unit. Therefore, the marginal cost of the 2nd unit of output is $15. The best choice would be to produce as long as the marginal revenue is greater than or equal to the marginal cost, which is the case for the first two units.

Table 13-14 -Refer to Table 13-14. What Is the Marginal Cost of Marginal