Suppose that the cost function for a commodity is
dollars. Find the marginal cost at
units and tell what this predicts about the cost of producing 1 additional unit. Round your answer to two decimal places.
?
A. 5.57. The cost to produce the 4th unit is predicted to be $5.57.
B. 5.00. The cost to produce the 4th unit is predicted to be $5.00.
C. 322.29. The cost to produce the 5th unit is predicted to be $322.29.
D. 6.14. The cost to produce the 5th unit is predicted to be $6.14.
E. 20.00. The cost to produce the 5th unit is predicted to be $20.00.
Answer: D
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D.
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