Questions: In the table below, what is the Marginal Cost of the 30th unit of output? Output Total Cost Marginal Cost 0 100 - 10 120 2 20 160 4 30 230 Select an answer and submit. a 6 b 7 c 8 d 70

In the table below, what is the Marginal Cost of the 30th unit of output?

Output  Total Cost  Marginal Cost
0  100  -
10  120  2
20  160  4
30  230  

Select an answer and submit.
a 6
b 7
c 8
d 70
Transcript text: In the table below, what is the Marginal Cost of the 30th unit of output? \begin{tabular}{|ccc|} \hline Output & Total Cost & Marginal Cost \\ \hline 0 & 100 & - \\ 10 & 120 & 2 \\ 20 & 160 & 4 \\ 30 & 230 & \\ & & \\ & Full text description \\ \hline \end{tabular} Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 6 b 7 c 8 d 70
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Solution

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The answer is b: 7.

Explanation: Marginal Cost (MC) is calculated as the change in Total Cost (TC) divided by the change in Output (Q).

From the table:

  • The Total Cost for 20 units of output is 160.
  • The Total Cost for 30 units of output is 230.

The change in Total Cost when output increases from 20 to 30 units is: \[ 230 - 160 = 70 \]

The change in Output is: \[ 30 - 20 = 10 \]

Therefore, the Marginal Cost for the 30th unit of output is: \[ \frac{70}{10} = 7 \]

So, the correct answer is b: 7.

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