Question

When a firm produces 50,000 units of output, its total cost equals $6.5 million. when it increases its production to 70,000 units of output, its total cost increases to $9.4 million. within this range, the marginal cost of an additional unit of output is $41.43. $134.29. $135. $145?

Answer 1

I believe the answer you're looking for is $145. explanation is marginal cost equals change in total variable cost/change in quantity. So it would be $9.4 million - $6.5 million = $2.9 million/20,000. So $2,900,000÷20,000= $145