Question

Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

Quantity (number of units)	1	2	3	4	5	6	7	8
Marginal Cost (dollars per unit)	3	4	6	9	13	18	24	31

Refer to Marginal Cost of Production. If the firm has $20 in fixed costs, producing 4 units generates variable costs of

Question 17 options:

	1) $22.
	2) $35.
	3) $42.
	4) $55.

Answer 1

Answer= $22

reason- Fixed cost doesn't affect marginal cost.

If the firm produces 4 units.

MCn=TVCn-TVCn-1

So variable cost for 4 units is the sum of marginal cost till Q=4.

Variable cost = $3+$4+$6+$9=$22