Given the data provided in the table below what will the mar

Given the data provided in the table below, what will the marginal cost equal for production at quantity (Q) level 4? | TRI MR | MCI Profit ITC o $5 $9 1 $5 $10 2 $5 $12 3 $5 $15 4 $5 $19 5 $5 $24 6 $5 $30 7 SS $45 $5.00 $4.00 $1.00 53.00

Solution

Correct option is (2).

Marginal cost (MC) = Change in total cost / Change in output

When output = 4,

MC = $(19 - 15) / (4 - 3) = $4 / 1 = $4