As output expands from 199 to 200 units and total costs rise from $2985 to $3000, the marginal cost and average cost of production are:
A) $1.00, and $200.
B) $15 and $15.
C) $29.85 and $15.
D) $1.

Question

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity, which is ($3000 - $2985) / (200 - 199) = $15. The average cost is the total cost divided by the quantity, which is $3000 / 200 = $15.

As Output Expands from 199 to 200 Units and Total