Question

The table below represents costs for producing pairs of sunglasses. Calculate the marginal cost of producing the 3rd pair of sunglasses. Round your answer to two decimal places.

Quantity	Total Cost	Marginal Cost	Average Total Cost
1	$29.00	$29.00	$29.00
2	$42.00	$13.00	$21.00
3	$51.50	$?	$17.17
4	$57.50	$6.00	$14.38

Provide your answer below:

Answer 1

Solution:-

Calculate Marginal Cost of producing the 3rd pair of sunglasses:-

Marginal Cost = Change in Total Cost / Change in Quantity

                           = 51.50 – 42 / 3 – 2

                           = 9.5 / 1

                           = 9.5

the marginal cost of producing the 3rd pair of sunglasses is $9.5