Monthly output at Vincent Sheds and Outbuildings changed from 15 to 16 outdoor storage buildings,and the total costs changed from $27,000 to $28,500.What was the marginal cost for the company?
A) $1,500
B) $2,000
C) $1,200
D) $10,000

Question

Quizplus · Accepted Answer

The marginal cost is calculated by dividing the change in total cost by the change in quantity. Here, the change in total cost is $28,500 - $27,000 = $1,500, and the change in quantity is 16 - 15 = 1. Therefore, the marginal cost is $1,500 / 1 = $1,500.

Monthly Output at Vincent Sheds and Outbuildings Changed from 15