Refer to Table 1 below: Table 1: Production Costs of the Firm A
[table]
Quantity of output per hour | Total Fixed Costs per hour($) | Total Variable Costs per hour ($) | Marginal Cost per hour of the…. ($) | Average Cost per hour ($) 0 | 250 | 0 | N/A | N/A 1 | 250 | 25 | 1st item = 25 | 275 2 | 250 | 43 | 2nd item = 18 | 146.50 3 | 250 | 58 | 3rd item = 15 | 102.67 4 | 250 | 75 | 4th item = 17 | 81.25 5 | 250 | 95 | 5th item = 20 | 6 | 250 | 126 | 6th item = | 62.67
[/table] What is the marginal cost of the 6th item?

Question

Refer to Table 1 below: Table 1: Production Costs of the Firm A
[table]
Quantity of output per hour | Total Fixed Costs per hour($) | Total Variable Costs per hour ($) | Marginal Cost per hour of the…. ($) | Average Cost per hour ($) 0 | 250 | 0 | N/A | N/A 1 | 250 | 25 | 1st item = 25 | 275 2 | 250 | 43 | 2nd item = 18 | 146.50 3 | 250 | 58 | 3rd item = 15 | 102.67 4 | 250 | 75 | 4th item = 17 | 81.25 5 | 250 | 95 | 5th item = 20 |  6 | 250 | 126 | 6th item = | 62.67
[/table] What is the marginal cost of the 6th item?

BlackTom AI · Accepted Answer

Marginal cost is the change in total cost from producing one more unit, and because fixed costs do not change with output, MC can be computed as the change in total variable cost (TVC) when output rises by one unit.

1) Relevant concepts
- Total Fixed Cost (TFC) is constant across output levels (here TFC = $250).
- Total Variable Cost (TVC) changes with output.
- Total Cost (TC) = TFC + TVC.
- Marginal Cost (MC) for the nth unit = TC(n) − TC(n−1) = TVC(n) − TVC(n−1).

2) Step-by-step reasoning and calculations
- From the table: TVC at 5 units = $95. TVC at 6 units = $126.
- Compute the change in TVC when going from 5 to 6 units:
  MC6 = TVC(6) − TVC(5) = 126 − 95.
- Perform the subtraction:
  126 − 95 = 31.

3) Alternative check using total cost
- TC(5) = TFC + TVC(5) = 250 + 95 = 345.
- TC(6) = 250 + 126 = 376.
- MC6 = TC(6) − TC(5) = 376 − 345 = 31. (Same result.)

4) Why this answer is correct
- Because fixed costs do not change, the marginal cost equals the extra variable cost of producing the 6th unit. The table gives exactly those TVC values, and their difference is $31, so the marginal cost of the 6th item is $31.

5) Why the other choices are incorrect
- a. $62.67 is the average cost at 6 units (TC(6)/6 = 376/6 ≈ 62.67), not the marginal cost.
- b. $126 is the total variable cost at 6 units, not the incremental cost of the 6th unit.
- c. $0 is incorrect because TVC increases from 95 to 126, so the marginal cost is not zero.

Conclusion: The marginal cost of the 6th item is $31, corresponding to answer d. 31.

类似问题

Why does the marginal cost curve decrease initially, but then start to increase?

If marginal cost equals average cost, then what must be TRUE?

Why does the marginal cost curve decrease initially, but then start to increase?

Why does the marginal cost curve decrease initially, but then start to increase?

Compared to traditional goods, digital goods have:

89 Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. Marginal cost will be at a minimum for this firm when it is hiring A. Q3 workers. B. Q2 workers. C. Q1 workers. D. more than Q3 workers.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单