The image contains a table and a multiple-choice question related to the marginal cost of an activity. Below is a transcription suitable for an educational website:**Refer to the accompanying table below. The marginal cost of the 3rd unit of this activity is:**| Units of Activity | Total Cost | Total Benefit ||-------------------|------------|---------------|| 0 | $0 | $0 || 1 | $30 | $100 || 2 | $40 | $160 || 3 | $60 | $190 || 4 | $100 | $210 || 5 | $150 | $220 || 6 | $210 | $225 |**Multiple Choice:**- ( ) $25- ( ) $20**Explanation of the Table:**- **Units of Activity**: Represents the number of units for a certain activity.- **Total Cost**: The cumulative cost associated with each level of activity.- **Total Benefit**: The cumulative benefit received from each level of activity.The question asks for the marginal cost of the 3rd unit, which is the difference in total cost between the 3rd and 2nd units. Here, the cost increases from $40 (for 2 units) to $60 (for 3 units), resulting in a marginal cost of $20 for the third unit.

Marginal cost refers to an increase in total cost because of one more unit of output.

Answered: Refer to the accompanying table below.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A cost that changes with the level of production is called a(n)____cost a.variable b.average total c.marginal b.fixed
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Refer to the accompanying table below. The marginal cost of the 3'd unit of this activity is: Units of Activity Total Cost Total Benefit $0 $0 1 $30 $100 $40 $160 3. $60 $190 4. $100 $210 $150 $220 6. $210 $225 2. 5.