What is the marginal cost of the seventh unit if only whole units are produced?

Rationale

The marginal cost of the seventh unit is 13.

Marginal cost refers to the additional cost incurred when producing one more unit of a good. In this case, the cost of producing the seventh unit is specifically calculated to be 13.

A (13.71) YOUR ANSWER

This value suggests a marginal cost slightly higher than the actual cost of the seventh unit. If the calculation of marginal cost resulted in this figure, it would imply that the costs associated with production have increased significantly, which does not align with the provided correct answer.

B (7.29) YOUR ANSWER

A marginal cost of 7.29 indicates a lower cost for the seventh unit than what was determined. This suggests a misunderstanding of the cost structure for the seventh unit, as it does not reflect the true additional expense incurred in producing that unit.

C (13) CORRECT

The marginal cost of the seventh unit is accurately represented as 13. This indicates that the cost of producing the seventh unit is consistent with the previous calculations and reflects the cost structure of the production process effectively.

D (16) YOUR ANSWER

This option suggests a much higher marginal cost for the seventh unit, which would not be appropriate unless there were substantial changes in production costs. This does not align with the calculated cost of 13 for the seventh unit and misrepresents the expense incurred.

Conclusion

The marginal cost of producing the seventh unit is a critical calculation in understanding production costs. The correct answer of 13 reflects the additional expense associated with producing that specific unit, while the other options misrepresent this value. Accurately determining marginal costs helps in making informed production decisions and optimizing resource allocation in a business context.

What is the marginal cost of the seventh unit if only whole units are produced?

The marginal cost of the seventh unit is 13.

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