The table below shows the short-run cost of a firm. Use it to answer the question below
| Quantity (kg) | Fixed cost ($) | Variable cost ($) | Total cost ($) | Marginal cost ($) | Average cost ($) |
| 1 | 750 | 200 | 950 | – | 950 |
| 2 | 750 | 560 | 1310 | 360 | 655 |
| 3 | 750 | 900 | P | Q | 550 |
Calculate the value of Q
- $350
-
$340
- $360
- $370
The correct answer is: B
Explanation
To get Q, we first have to solve for P, hence we have;
Total cost (P) = fixed cost + variable
750 + 900 = 1650
Marginal cost (Q) = 1650 - 1310 = 340
| Quantity (kg) | Fixed cost ($) | Variable cost ($) | Total cost ($) | Marginal cost ($) | Average cost ($) |
| 1 | 750 | 200 | 950 | - | 950 |
| 2 | 750 | 560 | 1310 | 360 | 655 |
| 3 | 750 | 900 | 1650 | 340 | 550 |