Asked by Duval Demps on Jul 27, 2024
Verified
(Table: Output and Costs) Use Table: Output and Costs.When output increases from 1 to 2,marginal cost equals:
A) $13.
B) $10.
C) $8.
D) $17.
Marginal Cost
The escalation in expenses resulting from the creation of one additional unit of a product or service.
Output
The quantity of goods or services produced within a certain period by a firm, industry, or country.
Variable Cost
Fees that directly alter according to the scale of production or output.
- Obtain an understanding of the marginal cost concept and its critical role in the decision-making process of production.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
C
Explanation :
To determine the marginal cost, we need to look at the change in total cost that results from a one-unit increase in output. In this case, as output increases from 1 to 2, total cost increases from $21 to $29, which represents a change of $8. Therefore, the marginal cost of producing the second unit of output is $8.
Learning Objectives
- Obtain an understanding of the marginal cost concept and its critical role in the decision-making process of production.
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