Calculate the short-run marginal cost for a firm given that total cost of inputs increased from $2,000 to $2,500 and quantity of output produced increased from 1 units to 3 units

Economics May 08, 2021

Calculate the short-run marginal cost for a firm given that total cost of inputs increased from $2,000 to $2,500 and quantity of output produced increased from 1 units to 3 units.
Enter the answer in the box below. Round to the nearest cent.

Expert Solution

Computation of Short-run Marginal Cost:

Marginal Cost = Change in Total Cost/Change in Quantity

Here,

Change in Total Cost = $2,500-$2,000 = $500

Change in Quantity = 3-1 = 2 Units

Marginal Cost = $500/2 = $250

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