Question 8 A particular product at a local store is priced at one unit for $10...

Question

Question

Answer 1

Answer #1

Option B.

Marginal cost refers to the change in price based on the changes in quantity.
It is given that for one unit it is $10 and for 2 units if is $16.
The marginal cost of buying second unit can be calculated as the change in price divided by the change in quantity.
MC = change in price ÷ change in quantity

= $16 - $10 / 2 - 1

= $6 / 1 = $ 6//

Answer 2

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