Question

This graph shows the marginal cost of producing each
bike. Select the correct answer from the options
available.
Based on this graph, which bike has a marginal cost of
$20?

A) Bike 1
B) Bike 2
C) Bike 3
D) Bike 4

Answer 1

Answer:

D) Bike 4

Explanation:

Marginal cost is the additional expense associated with the production of an extra unit. Calculating marginal costs will involve isolating the expense of the last unit from the previous productions.

The graph has already isolated the cost of the extra unit from the previous output.

From the graph, Bike 4 has a marginal cost of 4.

Answer 2

The bike that has a marginal cost of $20 is bike 4.

What is marginal cost?

Marginal cost is the change in total cost when output is increased by one unit. Output is maximised when marginal cost is equal to marginal revenue. Tracing $20 to the vertical axis, the marginal cost of producing bike 4 is $20.

For example, when total cost for 2 units of output is 20 and total cost for 3 units is 30. Marginal cost of producing 3 units is 10. (30 - 20) / (3 - 2).

To learn more about marginal cost, please check: https://brainly.com/question/26246533