passwella.
Menu

JAMB Economics 1985 Question 47

Question 47

Theory of Costs and Revenue

Output | Total Cost (N)
1 | 20
2 | 56
3 | 96
4 | 144
5 | 160
In the table above, the marginal cost when output is two units is,

  1. A.N16.00
  2. B.N20.00
  3. C.N36.00
  4. D.N40.00
  5. E.N48.00
Show the answer and explanation

Answer: C (N36.00)

Explanation

MC of the 2nd unit = TC(2) − TC(1) = 56 − 20 = N36.