Answer (C) is correct . Marginal cost is the incremental cost of producing one additional unit. Thus, the marginal cost of the ninth unit is the increment over the total cost for eight units. The total cost for eight units at $34.75 each is $278, and the total cost for nine units at $33.75 each is $303.75, so the total cost for nine units is $25.75 greater than the total for eight units. This $25.75 is the marginal cost of the ninth unit.
Answer (A) is incorrect because This amount is the variable cost of the eighth unit.
Answer (B) is incorrect because This amount is the variable cost of the ninth unit.
Answer (D) is incorrect because This amount is the average cost per unit for nine units.
|
The marginal cost of producing the ninth unit is
