Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

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

Answer

The marginal cost is 8 dollars, the average total cost is $5.

Work Step by Step

Marginal cost is the increase in the gross expense of an additional unit of production, meaning that the cost increases by $8 with the addition of an extra unit. And the marginal cost is 8 dollars. In the other hand, the average cost of manufacturing 1 unit is $5.
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