Refer to Figure 8.4. The marginal cost of the third microwave oven is

A) $50.
B) $166.67.
C) $300.
D) indeterminate from this information.

Question

Refer to Figure 8.4. The marginal cost of the third microwave oven isA)  $50.B)  $166.67.C)  $300.D)  indeterminate from this information.

Bhumi Sheladia · Accepted Answer

Final Answer : A, Explanation :  The marginal cost of producing an additional unit is the change in total cost divided by the change in quantity. For the third microwave oven, the total cost increases from $400 to $450, which is a $50 increase for one additional unit, making the marginal cost $50.

Refer to Figure 8.4. The marginal cost of the third microwave oven is

A) $50.
B) $166.67.
C) $300.
D) indeterminate from this information.

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