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Ivan
4 years ago
10

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

Business
1 answer:
nataly862011 [7]4 years ago
4 0

Answer:

$0.25

Explanation:

The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:

MC = \$1.75-\$1.50 = \$0.25

The marginal cost of the sixth pencil is $0.25

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