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Refer to Scenario 14-4. When the firm increases its output from 150 units to 151 units, its marginal cost is

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Answer: $32.05

Step-by-step explanation:

Marginal Cost is the Cost of producing one extra unit.

The total cost of producing 150 units is;

Total = Units * average cost

= 150 * 24.50

= $3,675

Total cost of producing 151 units

= 151 * 24.55

= $3,707.05‬

Difference = 3,707.05‬ - 3,675

= $32.05

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