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To calculate the firm's marginal cost, we need to find the change in variable costs divided by the change in output.
Change in variable costs = $700 - $500 = $200
Change in output = 60 - 50 = 10 units
Marginal cost = Change in variable costs / Change in output
Marginal cost = $200 / 10 units
Marginal cost = $20
Therefore, the firm's marginal cost is $20. Answer choice C.