If the marginal cost were $14,output would beA) 1.B) 2.C) 3.D) 4.E) 5.

Question

Arinola Folashade · Accepted Answer

Final Answer : E, Explanation :  Marginal cost is the cost of producing one additional unit of a good. Firms will produce up to the point where the price of the good equals the marginal cost. In this case, the price that matches the marginal cost of $14 is not explicitly listed, but we can see that the price decreases as output increases. The last price listed is $22 for 5 units of output, which is higher than the marginal cost of $14, suggesting that the firm would produce more if it could. However, since 5 units is the highest output level listed and its price is the closest to the marginal cost without going below it, the firm would produce 5 units of output.

If the marginal cost were $14,output would be

A) 1.
B) 2.
C) 3.
D) 4.
E) 5.

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