Production Costs of a Firm Quick Check

Question

5 of 55 of 5 Items

Question
Use the table to answer the question.

Number of Workers Output Total Cost Fixed Cost Variable Cost
1 20 $300 $250 $50
2 35 $352
$250 $102
3 45 $406 $250 $156
4 50 $462 $250 $212
What is the marginal cost of producing the 45th unit of output?

(1 point)
Responses

$52
52 dollars

$154
154 dollars

$156
156 dollars

$5.40

Answer 1

The correct answer is $156.

Marginal cost is the additional cost of producing one more unit of output. In this case, the marginal cost of producing the 45th unit of output is $156, which is the difference in total cost between producing 44 units ($406) and producing 45 units ($462).