Answer to Question #244860 in Microeconomics for Buhle

Question

Output units R Total cost R
0 100
1 110
2 130
3 166
4 220
5 300

The marginal cost of the fifth unit is _______

Answer 1

The marginal cost of producing the fifth unit = the total cost of producing five units – the total cost to produce four units

= 300-220=80

The marginal cost of the fifth unit is 80