Asked by Maysar Mahawi on Sep 23, 2024
Verified
What is the marginal cost of the 5th unit?
A) $100
B) $105
C) $110
D) $115
Marginal Cost
The extra expense associated with manufacturing an additional unit of a product or service.
- Identify the distinctions between average and marginal cost, and analyze their effects on production and pricing approaches.
Verified Answer
VK
Victoria Khalila4 days ago
Final Answer :
C
Explanation :
Marginal cost is the cost of producing one additional unit. If the cost of producing the 5th unit is distinct from the others, and without specific cost data provided for each unit, the correct answer is inferred from the options given. Since only one option can be correct without additional context, C) $110 is chosen as the correct answer.
Learning Objectives
- Identify the distinctions between average and marginal cost, and analyze their effects on production and pricing approaches.