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JAMB Economics 1982 Question 40

Question 40

Theory of Costs and Revenue

Unit of output | Total cost
1 | 20
2 | 32
3 | 42
4 | 48
5 | 50
In the above table, the marginal cost of the 3rd unit of output is

  1. A.12
  2. B.6
  3. C.10
  4. D.2
  5. E.9.
Show the answer and explanation

Answer: C (10)

Explanation

Marginal cost of the 3rd unit = TC of 3 units − TC of 2 units = 42 − 32 = 10.