Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 13 - Part V - The Costs of Production - Questions for Review - Page 275: 4

Answer

Marginal Cost is \$8, and Average Total Cost is \$5

Work Step by Step

Marginal cost is the increase in total cost which arises from an extra unit of production, so as here the cost in increasing by \$8 after adding an extra unit. so marginal cost is \$8. On the other hand, the total cost which is required to produce 1 unit is \$5.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions