Question

For the firm described in the table below, what is the marginal cost of producing the 4th flashlight? Variable Cost ($) Quantity of Fixed Cost Flashlights ($) 0 20 20 2 20 - 15 2. 25 3 20 37 4 20 52 $12 $20 $15 ☺ ☺ ☺ $37 $52

Answer 1

# Quantity fined cart Variable Cart 0 1 15 3 20 37 52 20 20+ 37=57 Total Cart of 3 Flashlight - Total Cart of 4 flacklight = 20 + 522 72 Marginal Cart of 4th flash light = Total Cartof 4 flashligh Total Cart of 3 flashlight 2. 72 – 57 Marginal cost of 4th 1 3rd flash light = $15 option Total Cart of 3 flashlight - 50 $57 is correct # Average Carta Total Cart Quantity Average Cart of 3 flashlight - 57 3 Average Cart of 3 flashlight $19 5th option is correct CS Scanned with CamScanner

* Quantity fixed Cart Vavable Cart Total Cart Marginel Cart 0 20 20 1 20 15 35 b 35-20-15 2 25 45 45-35=10 3 37 57 57-45 - 12 52 72 4 20 72-57= 15 can from above table we see that as output increases from 2 to 3 the Marginel Core increares and arro as output increases from 3 to 4 the marginal cant increases so yeu and 4 4th both options options are correct CS Scanned with CamScanner