Answer the Question on the Basis of the Accompanying Table

question 72

Multiple Choice

Answer the question on the basis of the accompanying table that shows average total costs (ATC) for a manufacturing firm whose total fixed costs are $10. $\begin{array}{|c|c|}\hline \text { Output } & \text { ATC } \\\hline 1 & \$ 40 \\\hline 2 & 27 \\\hline 3 & 29 \\\hline 4 & 31 \\\hline 5 & 38 \\\hline\end{array}$ The marginal cost of the fourth unit of output is

• A) $2.
• B) $12.
• C) $37.
• D) $16.

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