Number of Workers Output Total Cost Fixed Cost Variable Cost

Question

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

$5.40
15.4 dollars

$156
156 dollars

$154
154 dollars

$52

Answer 1

To calculate the marginal cost of producing the 45th unit of output, we first need to determine the change in total cost and the change in output from producing the third unit (45 units) to the fourth unit (50 units).

We have:

• Total Cost when producing 3 units (output of 45): $406
• Total Cost when producing 4 units (output of 50): $462

Now, let's calculate the change in total cost and change in output:

1. Change in total cost = Total Cost at 4 units - Total Cost at 3 units = $462 - $406 = $56

2. Change in output = Output at 4 units - Output at 3 units = 50 - 45 = 5

Now, we can calculate the marginal cost (MC):

\[ MC = \frac{\text{Change in Total Cost}}{\text{Change in Output}} \] \[ MC = \frac{56}{5} = 11.2 \]

The marginal cost of producing the 45th unit is $11.20.

However, none of the options you provided include $11.20 as an answer. Can you double-check the options to see if there might have been a mistake?