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

$5.40
15.4 dollars

$156
156 dollars

$154
154 dollars

$52

Answer 1

To calculate the marginal cost (MC) of producing the 45th unit of output, we can determine the change in total cost when increasing output from 35 units to 45 units.

From the table, we can observe:

• The total cost for producing 35 units is $352.
• The total cost for producing 45 units is $406.

Now, we can calculate the change in total cost:

\[ \text{Change in Total Cost} = \text{Total Cost at 45 units} - \text{Total Cost at 35 units} \]

\[ \text{Change in Total Cost} = 406 - 352 = 54 \]

Next, we need to determine the change in output:

\[ \text{Change in Output} = 45 - 35 = 10 \]

Now we can find the marginal cost by dividing the change in total cost by the change in output:

\[ \text{Marginal Cost} = \frac{\text{Change in Total Cost}}{\text{Change in Output}} = \frac{54}{10} = 5.4 \]

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

The answer is: $5.40.