In the short run, a firm's total costs of producing the hundredth unit of output equal $9 comma 000. If it produces one more unit, its total costs will increase to $9 comma 100. What is the marginal cost of the 101st unit of output?

Question

Business

Brooke Murillo

2 April, 08:46

In the short run, a firm's total costs of producing the hundredth unit of output equal $9 comma 000. If it produces one more unit, its total costs will increase to $9 comma 100. What is the marginal cost of the 101st unit of output?

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Answers (1)

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Blaine White · Answer 1

The marginal cost for producing the 101th unit is $100

Explanation:

The marginal cost can be defined as the cost of producing an additional unit of output. It can be traced by increasing the total output by one unit and tracing the change in the total cost as a result of this one unit increase in output.

The total cost of producing 100 units is $9000

The total cost of producing 101 units is $9100

The marginal cost of 101th unit is = Total cost of 101 units - total cost of 100 units

The marginal cost of 101th unit = 9100 - 9000 = $100