Use the table to answer the question.

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

$154
154 dollars

$156
156 dollars

$52
52 dollars

$5.40

Answer 1

To calculate the marginal cost of producing the 45th unit of output, we first need to determine the change in total cost when output increases from 35 (2 workers) to 45 (3 workers).

From the data given:

• Total Cost when output is 35 (with 2 workers) = $352
• Total Cost when output is 45 (with 3 workers) = $406

Now, we calculate the change in total cost:

Change in Total Cost = Total Cost at 45 units - Total Cost at 35 units Change in Total Cost = $406 - $352 = $54

Next, determine the change in output:

Change in Output = Output at 45 units - Output at 35 units Change in Output = 45 - 35 = 10 units

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

Marginal Cost (MC) = Change in Total Cost / Change in Output MC = $54 / 10 units = $5.40

So, the marginal cost of producing the 45th unit of output is $5.40.

Thus, the correct response is $5.40.