Question

What is the marginal cost of producing the tenth unit? No. Units produced Total Revenue Total Costs 0 0 0 10 120 40 20 200 100 30 270 170 40 310 260 50 330 370 Multiple Choice a. 80 b. 5 c. 40 d. 4

Answer 1

The marginal cost of producing the tenth unit is $1.

Step-by-step explanation:

The marginal cost of producing the tenth unit can be calculated by finding the change in total cost and dividing it by the change in quantity. In this case, let's examine the information given:

No. of Units producedTotal RevenueTotal Costs000101204020200100302701704031026050330370

The change in total cost from producing the ninth unit to the tenth unit is $10, and the change in quantity is 10 units. Therefore, the marginal cost of producing the tenth unit is $1.

Answer 2

The marginal cost of producing the tenth unit is $4. The Option D.

Marginal cost refers to the additional cost incurred by producing one more unit of a product or providing one more unit of a service. This cost is usually used to make decisions regarding production levels and pricing strategies.

The formula for marginal cost is Change in cost / Change in quantity.

At 10 unit:

Cost 2 = 40, Cost 1 = $0.

Quantity 2 = 10, Quantity 1 = 0

The marginal cost of producing the tenth unit is:

= 40 - $0 / 10 - 0

= $40 / 10

= $4.

Hence, the marginal cost of producing the tenth unit is $4.