Multiple Choice
Refer to Table 13-9. If the total output with two workers is 30 units and with three workers is 42 units, what is the marginal product of the third worker?
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0. Basic Principles of Economics
Marginal Analysis
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Refer to Table 13-8. What is the marginal cost of producing the fifth unit of output?
A
The average total cost of producing 5 units
B
The total cost of producing 5 units divided by 5
C
The difference between fixed cost and variable cost at 5 units
D
The increase in total cost when output rises from 4 to 5 units
Verified step by step guidance1
Understand that marginal cost (MC) is defined as the additional cost incurred when producing one more unit of output. Mathematically, it is the change in total cost (TC) divided by the change in quantity (Q).
Identify the total cost of producing 4 units and the total cost of producing 5 units from the given data (Table 13-8).
Calculate the change in total cost by subtracting the total cost at 4 units from the total cost at 5 units: \(\Delta TC = TC_5 - TC_4\).
Calculate the change in quantity, which is \(\Delta Q = 5 - 4 = 1\) unit.
Compute the marginal cost using the formula: \(MC = \frac{\Delta TC}{\Delta Q} = TC_5 - TC_4\). This gives the increase in total cost when output rises from 4 to 5 units.
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