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
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?
1 answer
2 answers