Answer the question on the basis of the following cost data

Answer the question on the basis of the following cost data for a purely competitive seller in the computer Total Total Total Fixed Variable Total OutputCost CostCost 2 3 4 5 6 50 50 50 50 50 50 SO 70 120 150 220 300 390 $50 120 170 200 270 350 440 The marginal cost of the fifth auto is: O $90. O $80 $20. O s50 O Type here to search

Solution

The marginal cost of fifth auto is :

Solution: $80

Explanation: Marginal cost = change in costs/change in quantity = (350 - 270) / (5-4) = 80