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What is marginal cost when Q=3? What is marginal cost when Q=4? Q Total Cost Tot

ID: 1213176 • Letter: W

Question

What is marginal cost when Q=3?

What is marginal cost when Q=4?

Q

Total Cost

Total Fixed Cost

Total Variable Cost

Average Fixed Cost

Average Variable Cost

Average Total Cost

Marginal Cost

0

40

40

0

1

80

40

40

40

40

80

40

2

110

40

70

20

35

55

30

3

130

40

90

13.33

30

43.33

20

4

156

40

116

10

29

39

26

Q

Total Cost

Total Fixed Cost

Total Variable Cost

Average Fixed Cost

Average Variable Cost

Average Total Cost

Marginal Cost

0

40

40

0

1

80

40

40

40

40

80

40

2

110

40

70

20

35

55

30

3

130

40

90

13.33

30

43.33

20

4

156

40

116

10

29

39

26

Explanation / Answer

What is marginal cost when Q=3 = (total cost of three units - total costs of two units)/(3-2)= (130-110)/(3-2)=20

What is marginal cost when Q=4 = (total cost of four units - total costs of three units)/(4-3)= (156-130)/(4-3)=26

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