Question

In the short​ run, a​ firm's total costs of producing the hundredth unit of output equal ​$8 comma 000
.
If it produces one more​ unit, its total costs will increase to ​$8 comma 200
.
Part 2
What is the marginal cost of the 101 Superscript st
unit of​ output?

Answer 1

The marginal cost of the 101st unit of output is the change in total cost divided by the change in quantity.

Change in total cost = $8,200 - $8,000 = $200
Change in quantity = 101 - 100 = 1

Marginal cost = Change in total cost / Change in quantity = $200 / 1 = $200