If the total cost is K30 for 5 units of output and K32 for 6 units of output, the marginal cost for producing the 6th unit is;

A. 2
B. 42
C. 32
D. 12
Showing working out

1 answer

To calculate the marginal cost for producing the 6th unit, we need to find the additional cost incurred when moving from 5 units of output to 6 units of output.

Total cost for 5 units of output = K30
Total cost for 6 units of output = K32

Therefore, the additional cost for producing the 6th unit is:
K32 - K30 = K2

So, the marginal cost for producing the 6th unit is K2, which means the answer is A. 2