ther question will save this Auestion 28 According to Table

ther question will save this Auestion 28 According to Table 4 from the image file, marinal con of he $60. $80. $120 $160.

Answer : Option number d is the correct answer.

In the given table TC = 100 when output level is 0 and TVC = 0. This means here TFC = 100 as

TC = TFC + TVC

=> TFC = TC - TVC

=> TFC = 100 - 0 [ When TC = 100 and TVC = 0 ]

=> TFC = 100

TFC = 100 is fixed for all output level of the table.

Now, when output = 5; TVC = 460 ; then TC = TFC + TVC = 100 + 460 = 560

When output = 6; TVC = 620; then TC = 100 + 620 = 720

Now, at sixth output level

MC (Marginal Cost) = Change in TC / Change in output level

=> MC = (720 - 560) / (6 - 5) = 160 / 1

=> MC = $160.

Therefore, at sixth output level the marginal cost is MC = $160.