**Table Analysis for Educational Purposes:**This table provides an analysis of costs associated with different levels of production output. The columns include:- **Output:** The units of production, ranging from 0 to 5.- **TFC (Total Fixed Cost):** Constant at 25 for all levels of output.- **TVC (Total Variable Cost):** Increases with output: 0, 25, 40, 70, 110, 160.- **TC (Total Cost):** Sum of TFC and TVC: 25, 50, 65, 95, 135, 185.- **MC (Marginal Cost):** Change in TC with each additional unit of output: Not calculated for the 0th unit, 25 for the 1st unit, 15 for the 2nd unit, 30 for the 3rd unit, and 50 for the 4th unit.- **ATC (Average Total Cost):** TC divided by output, calculated from the 1st unit onward.**Problem:***What is the marginal cost of the 2nd unit of output?*- Options: - Cannot be determined. - 30 - 15 - 25**Diagrams:**There are no diagrams or graphs in the table, only numerical data.**Explanation:**The marginal cost (MC) for the second unit is calculated as the change in total cost (TC) when the output increases from 1 to 2 units. \[ \text{MC} = \text{TC at 2 units} - \text{TC at 1 unit} = 65 - 50 = 15 \]Therefore, the marginal cost of the 2nd unit is 15. The correct answer is: **15**.

Answered: Image /qna-images/answer/363271ba-a313-4fcd-abfe-61c7cf207223.jpg

Output TFC TVC TC MC ATC A 25 25 --- --- ---- -- В 1 25 25 50 25 50 C 2 25 40 65 32.5 D 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 2nd unit of output? Cannot be determined. 30 15 25 O O O C

Output TFC TVC TC MC ATC A 25 25 --- --- ---- -- В 1 25 25 50 25 50 C 2 25 40 65 32.5 D 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 2nd unit of output? Cannot be determined. 30 15 25 O O O C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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