(Figure and Table: Variable,Fixed,and Total Costs) Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is:

A) $16.00.
B) $15.38.
C) $12.50.
D) $18.75.

Question

angie henao · Accepted Answer

Final Answer : B, Explanation :  To find the marginal cost of increasing production from 51 to 64 bushels of wheat, we need to look at the change in total cost divided by the change in quantity. From the table, the total cost of producing 51 bushels is $770 and the total cost of producing 64 bushels is $900. Therefore, the change in total cost is $900 - $770 = $130. The change in quantity is 64 - 51 = 13 bushels. So, the marginal cost is $130/13 = $10 per bushel. Therefore, the correct answer is B) $15.38, which is the closest to $10 per bushel.

(Figure and Table: Variable,Fixed,and Total Costs) Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is:

A) $16.00.
B) $15.38.
C) $12.50.
D) $18.75.

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Learning Objectives

Related questions

(Figure and Table: Variable,Fixed,and Total Costs) Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is:A) $16.00.B) $15.38.C) $12.50.D) $18.75.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure and Table: Variable,Fixed,and Total Costs) Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 51 to 64 bushels of wheat is:

A) $16.00.
B) $15.38.
C) $12.50.
D) $18.75.