The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4

- In Table 7.4,at 4 units of output marginal cost is:
A)$10.
B)$15.
C)$20.
D)$25
E)$30.

Question

The table given below shows the total cost of producing different units of the output by a competitive firm. Table 7.4

- In Table 7.4,at 4 units of output marginal cost is:
A)$10. 
B)$15. 
C)$20. 
D)$25 
E)$30.

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred on producing an additional unit of output. From the table, the total cost of producing 3 units of output is $45 and the total cost of producing 4 units of output is $60. Therefore, the marginal cost of producing the fourth unit of output is $60-$45=$15. So, the correct option is B) $15.

The Table Given Below Shows the Total Cost of Producing