Practice your knowledge of the Marginal Cost Curve:
1. If the Total Cost of producing 98 burgers at “Junk-in-the-Bag” is $68, and the cost of producing 99 burgers is $68.95, what is the marginal cost of the 99th burger? Why?
2. Complete the table below:
| Quantity of Snow Boards |
Total Fixed Cost |
Total Variable Cost |
Total Cost | Marginal Cost |
|---|---|---|---|---|
| 0 | $114.34 | 0 | $114.34 | — |
| 1 | $114.34 | $ 78 | $192.34 | |
| 2 | $114.34 | $ 128 | $242.34 | |
| 3 | $114.34 | $ 150 | $264.34 | |
| 4 | $114.34 | $ 200 | $314.34 | |
| 5 | $114.34 | $ 259 | $373.34 | |
| 6 | $114.34 | $ 360 | $474.34 | |
| 7 | $114.34 | $ 480 | $594.34 | |
| 8 | $114.34 | $ 650 | $764.34 | |
| 9 | $114.34 | $ 900 | $1014.34 | |
| 10 | $114.34 | $ 1,300 | $1414.34 |
3. Graph the Marginal Cost from number 2 above.
4. Given the graph below, estimate the lowest average total cost per unit of production and the number of units produced at this cost. Explain how you arrived at your answers.
Great! You finished the Marginal Cost lesson!