Exhibit 7-9 Cost schedule for firm X
OutputQuantity
Total FixedCost
Total VariableCost
0
$100
$    0
1
  100
    50
2
  100
    84
3
  100
  108
4
  100
  127
5
  100
  150
As shown in Exhibit 7-9, the marginal cost of producing the third unit is:

A. $50.
B. $16.
C. $24.
D. $23.

Answer: C

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