Chapter 13 - Part V - The Costs of Production - Quick Check Multiple Choice - Page 276: 3

d. Marginal cost is 8 dollars, and average total cost is 5 dollars.

Marginal costs = Δ(Total Costs)/Δ(Output) = (5008 - 5000) / (1001 - 1000) = 8/1 = 8. Average total costs = (Total Costs)/(Output) = 5008 / 1001 = 5.002 Average variable costs cannot be calculated as the values have not been specified.