In Exhibit 6-7, by filling in the blanks it can be determined that the total cost of the second unit of output is: a

Economics May 02, 2021

In Exhibit 6-7, by filling in the blanks it can be determined that the total cost of the second unit of output is: a. 1,000. b. 1,800. c. 1,200. d. 700. e. 0.

Expert Solution

Answer

b .

Explanation

Computation of Total Cost of 2nd Unit:

Total Cost of 2nd Unit = Total Cost of 1st Unit + Marginal Cost of 2nd Unit

= $900 + $900

Total Cost of 2nd Unit = $1,800

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