Question

Output tc 0 150 10 210 20 260 30 300 40 350 50 410 60 490 70 610 80 790 refer to the information above to answer this question. What is the value of marginal cost when mp is maximized?

1) 5
2) 4
3) 120
4) 50
5) 80

Answer 1

To find the value of marginal cost when MP is maximized, we need to locate the output level where MP reaches its peak. However, the provided data does not include information on MP, so an accurate answer cannot be given without further information showing the relationship between output and MP.

Step-by-step explanation:

The value of marginal cost when marginal product (MP) is maximized can be determined by first identifying the output level at which MP reaches its maximum. This usually occurs just before MP starts to decrease, as according to the law of diminishing marginal returns. However, the provided information does not explicitly state the marginal product for different output levels, so we cannot pinpoint when MP is maximized based solely on this data. Generally, when MP is maximized, it corresponds to the lowest point of the marginal cost (MC) curve. In the given examples, marginal cost values are derived from changes in total cost as output increases. Yet without data on MP or total product (TP), we cannot accurately resolve the question as posed.

We would need additional information showing the relationship between output and marginal product to determine at what level MP is maximized and therefore identify the corresponding marginal cost.