Suppose in the table to the right, workers are paid $10 per hour and there are no other costs.

   Total Cost, TC, is just L x 10.

   Marginal Cost, MC is the change in cost divided by change in output or 10 ÷ MP.

   As an exercise, see if you can fill in the table to the right. When you're done you can check your answer on the following page.

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Labor Q MP AP TC MC
0 0 - - - -
1 3 - - - -
2 9 - - - -
3 16 - - - -
4 23 - - - -
5 29 - - - -
6 34 - - - -
7 38 - - - -
8 41 - - - -
9 43 - - - -
10 44 - - - -