Notice the costs as given in the table below. What is the marginal cost when total cost is $23?
A) $5
B) $3
C) $2
D) $1

Question

Notice the costs as given in the table below. What is the marginal cost when total cost is $23? 
A) $5 
B) $3 
C) $2 
D) $1

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred when one more unit of output is produced. In the table, we can see that when the quantity is increased from 4 to 5, the total cost increases from $21 to $23. Therefore, the marginal cost of producing the 5th unit is $2. Choice C is the correct answer.

Notice the Costs as Given in the Table Below