Question

Use the table to answer the question.

Worker Output and Costs
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)

$5.40


$154


$156


$52

Answer 1

Marginal cost = change in total cost / change in output = ($406 − $352) / (45 − 35) = $54 / 10 = $5.40.

Answer: $5.40.