Which of the following is a way to calculate the marginal cost of the $100^{ ext {th }}$ unit of output?

Choose 1 answer:
(A) Fixed costs of producing 100 units + Variable costs of p]
100
(B) Variable costs of producing 100 units
100
(c) Fixed costs + Variable cost of producing 100 units
(D) $\frac{ ext { Fixed costs of producing } 100 ext { units }}{100}$
(E) Total cost of producing 100 units - Total cost of produc:

Question

Which of the following is a way to calculate the marginal cost of the $100^{	ext {th }}$ unit of output?

Choose 1 answer:
(A) Fixed costs of producing 100 units + Variable costs of p]
100
(B) Variable costs of producing 100 units
100
(c) Fixed costs + Variable cost of producing 100 units
(D) $\frac{	ext { Fixed costs of producing } 100 	ext { units }}{100}$
(E) Total cost of producing 100 units - Total cost of produc:

Accepted Answer

∻Solution∻ ‖ a ⋮ Marginal Cost Definition: Marginal cost (MC) is the additional cost incurred by producing one more unit of a good or service. It is calculated as the change in total cost (TC) divided by the change in quantity (Q). Mathematically, it is expressed as $MC = \frac{\Delta TC}{\Delta Q}$. ‖ ‖ b ⋮ Calculation for the 100th Unit: To find the marginal cost of the 100th unit, we need to consider the change in total cost when the quantity produced changes from 99 to 100 units. This can be represented as $MC_{100} = TC_{100} - TC_{99}$. ‖ ‖ c ⋮ Fixed Costs Irrelevance: Fixed costs do not change with the level of output, so they do not affect the marginal cost. Therefore, any option involving fixed costs can be eliminated. ‖ ‖ d ⋮ Correct Option: The correct way to calculate the marginal cost of the 100th unit is to consider the variable costs associated with producing that unit. Thus, the correct answer is (B) Variable costs of producing 100 units. ‖ ∻Answer∻ ⚹ (B) Variable costs of producing 100 units ⚹ ∻Key Concept∻ ⚹ Marginal Cost Calculation ⚹ ∻Explanation∻ ⚹ Marginal cost is determined by the change in total cost due to producing one additional unit. Fixed costs do not change with output, so they do not affect marginal cost. Therefore, the correct way to calculate the marginal cost of the 100th unit is by considering the variable costs associated with producing that unit. ⚹◊What is the formula to calculate marginal cost in Microeconomics?⍭ Generate me a similar question◊

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