11. What is the marginal cost of the seventh unit if only whole units are produced?
Answer: A
The marginal cost of the seventh unit is $13.00.
The marginal cost of the seventh unit, when only whole units are produced, is $13.00, indicating the additional cost incurred to produce that specific unit.
A) $13.00
This option accurately represents the additional cost associated with producing the seventh unit. It reflects the change in total cost that results from producing one more unit, thus making it the correct choice.
B) $13.71
This option is incorrect because it suggests a marginal cost that exceeds the actual cost incurred to produce the seventh unit. It does not align with the calculated additional expense.
C) $7.29
This option is also incorrect as it indicates a marginal cost that is significantly lower than the true additional cost of producing the seventh unit. It fails to represent the actual increase in cost.
D) $16.00
This option is incorrect as well because it suggests a marginal cost that is higher than the cost of producing the seventh unit. Such a figure does not accurately capture the financial implications of that specific production decision.
Conclusion
The correct answer, $13.00, directly reflects the additional cost of producing the seventh unit, making it the most accurate choice. In contrast, the other options either overstate or understate the marginal cost, failing to represent the true financial impact of producing that unit. Thus, option A is definitively the correct answer.