Use the following to answer questions:
-(Table: Cost Data) Look at the table Cost Data. The marginal cost of producing the fourth purse is:
A) $60.
B) $50.
C) $40.
D) $20.

Question

Use the following to answer questions: 
-(Table: Cost Data) Look at the table Cost Data. The marginal cost of producing the fourth purse is:
A) $60. 
B) $50. 
C) $40. 
D) $20.

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one more unit. To find the marginal cost of the fourth purse, subtract the total cost of producing three purses from the total cost of producing four purses. If the total cost for three purses is $120 and for four purses is $160, the marginal cost is $160 - $120 = $40.

Use the Following to Answer Questions