Answer (B) is correct . Marginal cost is the additional cost of producing one more unit of output. Because total cost increased from $250 to $360, the marginal cost of the second unit is $110.
Answer (A) is incorrect because This amount is the fixed cost of production.
Answer (C) is incorrect because This amount is the marginal cost of the first unit of production.
Answer (D) is incorrect because This amount is the average cost of production for two units.
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The marginal cost of the second unit of output is
