Total Total Average Average Average Output Fixed Variable Total Marginal Variable Fixed Total (Q) Cost Cost Cost Cost Cost Cost Cost $200 $0 $200 20 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Marginal Cost (MC) if it increases its Output (Q) from 20 to 40? $100 $10.00 $7.50 $5.00
Total Total Average Average Average Output Fixed Variable Total Marginal Variable Fixed Total (Q) Cost Cost Cost Cost Cost Cost Cost $200 $0 $200 20 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Marginal Cost (MC) if it increases its Output (Q) from 20 to 40? $100 $10.00 $7.50 $5.00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 8 of 20
Total
Total
Average Average Average
Fixed Variable Total Marginal Variable Fixed
Cost
$200
Output
Total
(Q)
Cost
Cost
Cost
Cost
Cost
Cost
$0
$200
$200
$150
$350
40
$200
$250
$450
60
$200
$450
$650
80
$200
$800
$1,000
For the cost data shown above, what is this firm's Marginal Cost (MC) if it increases its Output (Q) from 20 to 40?
$100
$10.00
$7.50
O $5.00
20
Expert Solution
Step 1
The total cost is the addition of all the costs incurred by the firm for the production of a given level of output. It includes the fixed cost, which is constant, and the variable cost, which varies with the level of output. The marginal cost is the change in cost incurred when the firm produces additional output. It is also known as the incremental cost.
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