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How to explain this problem pertaining to marginal cost?

Economics
Tutor: None Selected Time limit: 0 Hours

Suppose you are producing 2 units of output (Q=2), if you want to produce one extra unit of output (Q=3), what would be the marginal cost?  

Output is 1 and SRTC is 400 and TR is $55.  I don't  know that you need this, but I have to show my work.

Apr 25th, 2015

marginal cost(MC)=change in total cost(TC)/change in quantity (Q)

hence MC=change TC/change Q

given outputs Q1=2units and Q2=3units and SRTC(short run total cost)=400

but also SRMC= change in SRTC/change Q

hence MC=(400-55)/(3-2)

=$345/unit

Apr 25th, 2015

that is the marginal cost considering fact you are given short run total cost as 400

Apr 25th, 2015

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Apr 25th, 2015
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