Study the table below and answer the question.

What is the short run marginal cost (SMC) at 4 units of output?

5

The correct answer is option 2: 5

 Step 1: Understanding Short-Run Marginal Cost (SMC)

Short-Run Marginal Cost (SMC) is calculated as: ΔTC/ ΔQ

where:

• ΔTC = Change in Total Cost
• ΔQ = Change in Output

Step 2: Extract Data from the Table

For Q = 4:

• TC (at Q = 4 )= 49
• TC (Q = 3) = 44
• Change in TC (ΔTC) = 49 - 44 = 5
• Change in Output (ΔQ) = 4 - 3 = 1

Step 3: Calculate SMC

SMC = 5/1 = 5