If a company produces 100 units at a total cost of $400 and decides to produce 101 units at a total cost of $404, what is the marginal cost of the 101st unit?

To find the marginal cost of producing the 101st unit, we need to look at how much the total cost changes when the company increases production from 100 to 101 units. The total cost for 100 units is $400, and the total cost for 101 units is $404. The difference in cost is $404 minus $400, which equals $4. This means that the marginal cost, or the cost of producing just one more unit (the 101st unit), is $4. So, for this example, producing that extra unit costs the company an additional $4.