To determine the marginal cost of the 4th unit, we need to understand the concept of marginal cost. Marginal cost is the additional cost incurred by producing one more unit of a good. It is calculated by taking the difference in total cost when production is increased by one unit.
We are given the total cost associated with different quantities in the table provided:
[tex]\[
\begin{array}{|c|c|c|}
\hline \text{Quantity} & \text{Price} & \text{Total Cost} \\
\hline 0 & \$ 32 & \$ 6 \\
\hline 1 & \$ 28 & \$ 20 \\
\hline 2 & \$ 24 & \$ 34 \\
\hline 3 & \$ 20 & \$ 48 \\
\hline 4 & \$ 16 & \$ 62 \\
\hline 5 & \$ 12 & \$ 76 \\
\hline
\end{array}
\][/tex]
To find the marginal cost of producing the 4th unit, we must calculate the change in total cost when we move from producing 3 units to producing 4 units:
[tex]\[
\text{Marginal Cost} = \text{Total Cost at 4 units} - \text{Total Cost at 3 units}
\][/tex]
From the table:
[tex]\[
\text{Total Cost at 4 units} = \$ 62
\][/tex]
[tex]\[
\text{Total Cost at 3 units} = \$ 48
\][/tex]
Calculating the difference:
[tex]\[
\text{Marginal Cost} = \$ 62 - \$ 48 = \$ 14
\][/tex]
Therefore, the marginal cost of the 4th unit is [tex]\( \$ 14 \)[/tex].
So, the correct answer is:
[tex]\[
\$ 14
\][/tex]
